Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 02, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 000-22507 | |
Entity Registrant Name | THE FIRST BANCSHARES, INC. | |
Entity Incorporation, State or Country Code | MS | |
Entity Tax Identification Number | 64-0862173 | |
Entity Address, Address Line One | 6480 U.S. Highway 98 West, Suite A | |
Entity Address, City or Town | Hattiesburg | |
Entity Address, State or Province | MS | |
Entity Address, Postal Zip Code | 39402 | |
City Area Code | 601 | |
Local Phone Number | 268-8998 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | FBMS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 24,028,120 | |
Entity Central Index Key | 0000947559 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and due from banks | $ 119,121 | $ 115,232 |
Interest-bearing deposits with banks | 237,650 | 804,481 |
Cash and cash equivalents | 356,771 | 919,713 |
Securities available-for-sale, at fair value (amortized cost: $1,638,341 - 2022; $1,741,153 - 2021; allowance for credit losses: $0) | 1,489,247 | 1,751,832 |
Securities held to maturity, net of allowance for credit losses of $0 (fair value: $561,333 - 2022; $0 - 2021) | 593,154 | 0 |
Other securities | 22,588 | 22,226 |
Total securities | 2,104,989 | 1,774,058 |
Loans held for sale | 6,703 | 7,678 |
Loans held for investment | 3,124,924 | 2,959,553 |
Allowance for credit losses | (32,400) | (30,742) |
Loans, net | 3,092,524 | 2,928,811 |
Interest receivable | 24,543 | 23,256 |
Premises and equipment | 126,512 | 125,959 |
Operating lease right-of-use assets | 4,050 | 4,095 |
Finance lease right-of-use assets | 2,162 | 2,394 |
Cash surrender value of bank-owned life insurance | 84,763 | 87,420 |
Goodwill | 156,942 | 156,663 |
Other real estate owned | 1,985 | 2,565 |
Other assets | 75,481 | 44,802 |
Total assets | 6,037,425 | 6,077,414 |
Deposits: | ||
Noninterest-bearing deposits | 822,841 | 756,118 |
Interest-bearing | 4,483,356 | 4,470,666 |
Total deposits | 5,306,197 | 5,226,784 |
Interest payable | 1,607 | 1,711 |
Subordinated debentures | 144,876 | 144,726 |
Operating lease liabilities | 4,145 | 4,192 |
Finance lease liabilities | 2,006 | 2,094 |
Allowance for credit losses on off-balance sheet credit exposures | 1,220 | 1,070 |
Other liabilities | 16,922 | 20,665 |
Total liabilities | 5,476,973 | 5,401,242 |
Shareholders’ equity: | ||
Common stock, par value $1 per share, 40,000,000 shares authorized; 21,778,731 shares issued at June 30, 2022, and 21,668,644 shares issued at December 31, 2021, respectively | 21,779 | 21,669 |
Additional paid-in capital | 459,503 | 459,228 |
Retained earnings | 231,654 | 206,228 |
Accumulated other comprehensive (loss) income | (111,373) | 7,978 |
Treasury stock, at cost, 1,249,607 shares at June 30, 2022 and 649,607 shares at December 31, 2021 | (41,111) | (18,931) |
Total shareholders’ equity | 560,452 | 676,172 |
Total liabilities and shareholders’ equity | $ 6,037,425 | $ 6,077,414 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Securities available-for-sale, amortized cost | $ 1,638,341 | $ 1,741,153 |
Securities available-for-sale, allowance for credit losses | 0 | 0 |
Securities held-to-maturity, allowance for credit losses | 0 | 0 |
Securities held-to-maturity | $ 561,333 | $ 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 21,778,731 | 21,668,644 |
Treasury stock (in shares) | 1,249,607 | 649,607 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Interest and dividend income: | ||||
Interest and fees on loans | $ 34,663 | $ 37,275 | $ 68,817 | $ 76,888 |
Interest and dividends on securities: | ||||
Taxable interest and dividends | 8,372 | 4,017 | 14,524 | 7,608 |
Tax exempt interest | 2,780 | 1,908 | 5,202 | 3,843 |
Interest on federal funds sold and interest-bearing deposits in other banks | 32 | 38 | 45 | 86 |
Total interest income | 45,847 | 43,238 | 88,588 | 88,425 |
Interest expense: | ||||
Interest on deposits | 1,905 | 3,315 | 4,188 | 7,164 |
Interest on borrowed funds | 1,841 | 1,873 | 3,660 | 3,982 |
Total interest expense | 3,746 | 5,188 | 7,848 | 11,146 |
Net interest income | 42,101 | 38,050 | 80,740 | 77,279 |
Provision for credit losses, LHFI | 450 | 0 | 450 | 0 |
Provision for credit losses, OBSC exposures | 150 | 0 | 150 | 0 |
Net interest income after provision for credit losses | 41,501 | 38,050 | 80,140 | 77,279 |
Non-interest income: | ||||
Service charges on deposit accounts | 2,038 | 1,756 | 4,078 | 3,516 |
(Loss) gain on securities | (80) | 77 | (83) | 97 |
Gain on acquisition | 281 | 0 | 281 | 0 |
Government awards/grants | 171 | 0 | 873 | 0 |
BOLI death proceeds | 0 | 0 | 1,630 | 0 |
(Loss) gain on sale of premises and equipment | (115) | 16 | (113) | 12 |
Other | 6,369 | 6,973 | 13,155 | 14,670 |
Total non-interest income | 8,664 | 8,822 | 19,821 | 18,295 |
Non-interest expense: | ||||
Salaries and employee benefits | 17,237 | 16,036 | 34,036 | 32,091 |
Occupancy and equipment | 3,828 | 3,813 | 7,704 | 7,692 |
Acquisition expense/charter conversion | 1,172 | 0 | 1,580 | 0 |
Other | 8,718 | 7,603 | 16,225 | 14,934 |
Total non-interest expense | 30,955 | 27,452 | 59,545 | 54,717 |
Income before income taxes | 19,210 | 19,420 | 40,416 | 40,857 |
Income tax expense | 3,457 | 3,820 | 7,834 | 8,613 |
Net Income (Loss) Available to Common Stockholders, Diluted | 15,753 | 15,600 | 32,582 | 32,244 |
Net Income (Loss) Available to Common Stockholders, Basic, Total | $ 15,753 | $ 15,600 | $ 32,582 | $ 32,244 |
Earnings per share: | ||||
Basic earnings per share (in dollars per share) | $ 0.77 | $ 0.74 | $ 1.58 | $ 1.53 |
Diluted earnings per share (in dollars per share) | $ 0.76 | $ 0.74 | $ 1.57 | $ 1.52 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 15,753 | $ 15,600 | $ 32,582 | $ 32,244 |
Unrealized gains/losses on securities: | ||||
Unrealized holding (losses) gains arising during the period on available-for-sale securities | (57,007) | 3,955 | (159,856) | (8,897) |
Reclassification adjustment for losses (gains) included in net income | 80 | (77) | 83 | (97) |
Unrealized holding (losses) gains arising during the period on available-for-sale securities | (56,927) | 3,878 | (159,773) | (8,994) |
Income tax benefit (expense) | 14,401 | (982) | 40,422 | 2,275 |
Other comprehensive (loss) income | (42,526) | 2,896 | (119,351) | (6,719) |
Comprehensive (loss) income | $ (26,773) | $ 18,496 | $ (86,769) | $ 25,525 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Beginning balance (in shares) at Dec. 31, 2020 | 21,598,993 | |||||
Beginning balance at Dec. 31, 2020 | $ 644,815 | $ 21,599 | $ 456,919 | $ 154,241 | $ 25,816 | $ (13,760) |
Treasury stock, beginning balance (in shares) at Dec. 31, 2020 | (483,984) | |||||
Net income | 16,644 | 16,644 | ||||
Common stock repurchased (in shares) | (165,623) | |||||
Common stock repurchased | (5,171) | $ (5,171) | ||||
Other comprehensive income (loss) | (9,615) | (9,615) | ||||
Dividends on common stock | (2,723) | (2,723) | ||||
Issuance of restricted stock grants (in shares) | 84,578 | |||||
Issuance of restricted stock grants | $ 85 | (85) | ||||
Restricted stock grants forfeited (in shares) | (500) | |||||
Restricted stock grants forfeited | $ (1) | 1 | ||||
Repurchase of restricted stock for payment of taxes (in shares) | (14,720) | |||||
Repurchase of restricted stock for payment of taxes | (441) | $ (15) | (426) | |||
Compensation expense | 440 | 440 | ||||
Ending balance at Mar. 31, 2021 | 643,949 | $ 21,668 | 456,849 | 168,162 | 16,201 | $ (18,931) |
Ending balance (in shares) at Mar. 31, 2021 | 21,668,351 | |||||
Treasury stock, ending balance (in shares) at Mar. 31, 2021 | (649,607) | |||||
Beginning balance (in shares) at Dec. 31, 2020 | 21,598,993 | |||||
Beginning balance at Dec. 31, 2020 | 644,815 | $ 21,599 | 456,919 | 154,241 | 25,816 | $ (13,760) |
Treasury stock, beginning balance (in shares) at Dec. 31, 2020 | (483,984) | |||||
Net income | 32,244 | |||||
Ending balance at Jun. 30, 2021 | 660,052 | $ 21,670 | 457,396 | 180,820 | 19,097 | $ (18,931) |
Ending balance (in shares) at Jun. 30, 2021 | 21,670,330 | |||||
Treasury stock, ending balance (in shares) at Jun. 30, 2021 | (649,607) | |||||
Beginning balance (in shares) at Mar. 31, 2021 | 21,668,351 | |||||
Beginning balance at Mar. 31, 2021 | 643,949 | $ 21,668 | 456,849 | 168,162 | 16,201 | $ (18,931) |
Treasury stock, beginning balance (in shares) at Mar. 31, 2021 | (649,607) | |||||
Net income | 15,600 | 15,600 | ||||
Other comprehensive income (loss) | 2,896 | 2,896 | ||||
Dividends on common stock | (2,942) | (2,942) | ||||
Issuance of restricted stock grants (in shares) | 3,000 | |||||
Issuance of restricted stock grants | $ 3 | (3) | ||||
Restricted stock grants forfeited (in shares) | (1,021) | |||||
Restricted stock grants forfeited | $ (1) | 1 | ||||
Compensation expense | 549 | 549 | ||||
Ending balance at Jun. 30, 2021 | 660,052 | $ 21,670 | 457,396 | 180,820 | 19,097 | $ (18,931) |
Ending balance (in shares) at Jun. 30, 2021 | 21,670,330 | |||||
Treasury stock, ending balance (in shares) at Jun. 30, 2021 | (649,607) | |||||
Beginning balance (in shares) at Dec. 31, 2021 | 21,668,644 | |||||
Beginning balance at Dec. 31, 2021 | 676,172 | $ 21,669 | 459,228 | 206,228 | 7,978 | $ (18,931) |
Treasury stock, beginning balance (in shares) at Dec. 31, 2021 | (649,607) | |||||
Net income | 16,829 | 16,829 | ||||
Common stock repurchased (in shares) | (600,000) | |||||
Common stock repurchased | (22,180) | $ (22,180) | ||||
Other comprehensive income (loss) | (76,825) | (76,825) | ||||
Dividends on common stock | (3,468) | (3,468) | ||||
Issuance of restricted stock grants (in shares) | 82,123 | |||||
Issuance of restricted stock grants | $ 82 | (82) | ||||
Restricted stock grants forfeited (in shares) | (1,000) | |||||
Restricted stock grants forfeited | $ (1) | 1 | ||||
Repurchase of restricted stock for payment of taxes (in shares) | (15,330) | |||||
Repurchase of restricted stock for payment of taxes | (554) | $ (16) | (538) | |||
Compensation expense | 466 | 466 | ||||
Ending balance at Mar. 31, 2022 | 590,440 | $ 21,734 | 459,075 | 219,589 | (68,847) | $ (41,111) |
Ending balance (in shares) at Mar. 31, 2022 | 21,734,437 | |||||
Treasury stock, ending balance (in shares) at Mar. 31, 2022 | (1,249,607) | |||||
Beginning balance (in shares) at Dec. 31, 2021 | 21,668,644 | |||||
Beginning balance at Dec. 31, 2021 | 676,172 | $ 21,669 | 459,228 | 206,228 | 7,978 | $ (18,931) |
Treasury stock, beginning balance (in shares) at Dec. 31, 2021 | (649,607) | |||||
Net income | 32,582 | |||||
Ending balance at Jun. 30, 2022 | 560,452 | $ 21,779 | 459,503 | 231,654 | (111,373) | $ (41,111) |
Ending balance (in shares) at Jun. 30, 2022 | 21,778,731 | |||||
Treasury stock, ending balance (in shares) at Jun. 30, 2022 | (1,249,607) | |||||
Beginning balance (in shares) at Mar. 31, 2022 | 21,734,437 | |||||
Beginning balance at Mar. 31, 2022 | 590,440 | $ 21,734 | 459,075 | 219,589 | (68,847) | $ (41,111) |
Treasury stock, beginning balance (in shares) at Mar. 31, 2022 | (1,249,607) | |||||
Net income | 15,753 | 15,753 | ||||
Other comprehensive income (loss) | (42,526) | (42,526) | ||||
Dividends on common stock | (3,688) | (3,688) | ||||
Issuance of restricted stock grants (in shares) | 47,827 | |||||
Issuance of restricted stock grants | $ 48 | (48) | ||||
Restricted stock grants forfeited (in shares) | (1,000) | |||||
Restricted stock grants forfeited | $ (1) | 1 | ||||
Repurchase of restricted stock for payment of taxes (in shares) | (2,533) | |||||
Repurchase of restricted stock for payment of taxes | (73) | $ (2) | (71) | |||
Compensation expense | 546 | 546 | ||||
Ending balance at Jun. 30, 2022 | $ 560,452 | $ 21,779 | $ 459,503 | $ 231,654 | $ (111,373) | $ (41,111) |
Ending balance (in shares) at Jun. 30, 2022 | 21,778,731 | |||||
Treasury stock, ending balance (in shares) at Jun. 30, 2022 | (1,249,607) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared | $ 0.18 | $ 0.17 | $ 0.14 | $ 0.13 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 32,582 | $ 32,244 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization and accretion | 6,520 | 6,685 |
Provision for credit loss | 450 | 0 |
Loss on sale or writedown of ORE | 235 | 416 |
Securities loss (gain) | 83 | (97) |
Acquisition gain | (281) | 0 |
Loss (gain) on disposal of premises and equipment | 113 | (12) |
Restricted stock expense | 1,012 | 989 |
Increase in cash value of life insurance | (1,080) | (950) |
Federal Home Loan Bank stock dividends | (1) | (26) |
Residential loans originated and held for sale | (79,176) | (134,389) |
Proceeds from sale of residential loans held for sale | 80,151 | 149,821 |
Changes in: | ||
Interest receivable | (1,287) | 2,318 |
Interest payable | (104) | (307) |
Operating lease liability | (47) | (784) |
Other, net | 6,029 | 2,097 |
Net cash provided by operating activities | 45,199 | 58,005 |
Cash flows from investing activities: | ||
Maturities, calls and paydowns of available-for-sale and held-to-maturity securities | 111,626 | 109,261 |
Purchases of available-for-sale and held-to-maturity securities | (604,673) | (379,796) |
Redemptions (Purchases) of other securities, net | (361) | 5,276 |
Net (increase) decrease in loans | (163,253) | 84,025 |
Net changes in premises and equipment | (4,125) | (787) |
Proceeds from sale of other real estate owned | 836 | 3,431 |
Proceeds from the sale of land | 712 | 0 |
Bank-owned life insurance – death proceeds | 1,630 | 0 |
Purchase of bank-owned life insurance | 0 | (12,244) |
Net cash used in investing activities | (657,608) | (190,834) |
Cash flows from financing activities: | ||
Increase in deposits | 79,413 | 458,753 |
Net decrease in borrowed funds | 0 | (114,647) |
Principal payments on finance lease liabilities | (88) | (94) |
Dividends paid on common stock | (7,050) | (5,580) |
Cash paid to repurchase common stock | (22,180) | (5,171) |
Payment of subordinated debt issuance costs | (1) | (59) |
Repurchase of restricted stock for payment of taxes | (627) | (441) |
Net cash provided by financing activities | 49,467 | 332,761 |
Net change in cash and cash equivalents | (562,942) | 199,932 |
Beginning cash and cash equivalents | 919,713 | 562,554 |
Ending cash and cash equivalents | 356,771 | 762,486 |
Supplemental disclosures: | ||
Loans transferred to other real estate | 495 | 1,576 |
Issuance of restricted stock grants | 130 | 88 |
Dividends on restricted stock grants | 105 | 85 |
Lease liabilities arising from obtaining right-of-use assets | $ 600 | $ 14 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial statements and the instructions to Form 10-Q of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the six months ended June 30, 2022, are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. For further information, please refer to the consolidated financial statements and footnotes thereto included in the Company’s Form 10-K for the fiscal year ended December 31, 2021. |
SUMMARY OF ORGANIZATION
SUMMARY OF ORGANIZATION | 6 Months Ended |
Jun. 30, 2022 | |
SUMMARY OF ORGANIZATION | |
SUMMARY OF ORGANIZATION | SUMMARY OF ORGANIZATION The First Bancshares, Inc., Hattiesburg, Mississippi (the “Company”), was incorporated June 23, 1995, under the laws of the State of Mississippi for the purpose of operating as a bank holding company. The Company’s primary asset is its interest in its wholly-owned subsidiary, The First Bank (the “Bank” or “The First”). On January 15, 2022, the Bank, then named The First, A National Banking Association, converted from a national banking association to a Mississippi state-chartered bank and changed its name to The First Bank. The First Bank is a member of the Federal Reserve System through the Federal Reserve Bank of Atlanta. The charter conversion and name change are expected to have only a minimal impact on the Bank’s clients, and deposits will continue to be insured by the Federal Deposit Insurance Corporation up to the applicable limits. At June 30, 2022, the Company had approximately $6.037 billion in assets, $3.093 billion in net loans held for investment (“LHFI”), $5.306 billion in deposits, and $560.5 million in shareholders' equity. For the six months ended June 30, 2022, the Company reported net income of $32.6 million. On February 25, 2022, the Company paid a cash dividend in the amount of $0.17 per share to shareholders of record as of the close of business on February 10, 2022. On May 25, 2022, the Company paid a cash dividend in the amount of $0.18 per share to shareholders of record as of the close of business on May 10, 2022. On July 27, 2022, the Company announced that its Board of Directors declared a cash dividend of $0.19 per share to be paid on its common stock on August 25, 2022 to shareholders of record as of the close of business on August 8, 2022. |
ACCOUNTING STANDARDS
ACCOUNTING STANDARDS | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
ACCOUNTING STANDARDS | ACCOUNTING STANDARDS Effect of Recently Adopted Accounting Standards In November 2021, FASB issued Accounting Standard Update (“ASU”) No. 2021-10, Government Assistance (Topic 832): “Disclosures by Business Entities about Government Assistance.” These amendments are expected to increase transparency in financial reporting by requiring business entities to disclose information about certain types of government assistance they receive. The Company adopted ASU 2021-10 effective January 1, 2022. Adoption of ASU 2021-10 did not have a material impact to the Company’s consolidated financial statements. New Accounting Standards That Have Not Yet Been Adopted In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-04, Reference Rate Reform (ASC 848): “Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This ASU provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. It is intended to help stakeholders during the global market-wide reference rate transition period. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022. The Company is assessing ASU 2020-04 and its impact on the Company’s transition away from LIBOR for its loan and other financial instruments. In October 2021, FASB issued ASU No. 2021-08, Business Combination (Topic 805): “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” This ASU requires entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. The amendment improves comparability after the business combination by providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. This ASU is effective for the Company after December 15, 2022. The Company is assessing ASU 2021-08 and its impact on the Company’s consolidated financial statements. In March 2022, FASB issued ASU No. 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.” These amendments eliminate the TDR recognition and measurement guidance and instead require that an entity evaluate whether the modification represents a new loan or a continuation of an existing loan. The amendments also enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. For public business entities, these amendments require that an entity disclose current period gross write-offs by year of origination for financing receivables and net investment in leases within the scope of Subtopic 326-20. Gross write-off information must be included in the vintage disclosures required for public business entities in accordance with paragraph 326-20-50-6, which requires that an entity disclose the amortized cost basis of financing receivables by credit quality indicator and class of financing receivable by year of origination. This ASU is effective for the Company after December 15, 2022. The Company is assessing ASU 2022-02 and its impact on the Company’s consolidated financial statements. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 6 Months Ended |
Jun. 30, 2022 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS Acquisitions Cadence Bank Branches On December 3, 2021, The First completed its acquisition of seven Cadence Bank, N.A. (“Cadence”) branches in Northeast Mississippi (the “Cadence Branches”). In connection with the acquisition of the Cadence Branches, The First assumed $410.2 million in deposits, acquired $40.3 million in loans at fair value, acquired certain assets associated with the Cadence Branches at their book value, and paid a deposit premium of $1.0 million to Cadence. As a result of the acquisition, the Company will have an opportunity to increase its deposit base and reduce transaction costs. The Company also expects to reduce costs through economies of scale. In connection with the acquisition of the Cadence Branches, the Company recorded a $1.6 million bargain purchase gain and $2.9 million core deposit intangible. The bargain purchase gain was generated as a result of the estimated fair value of net assets acquired exceeding the merger consideration, based on provisional fair values. The bargain purchase gain is considered non-taxable for income taxes purposes. The core deposit intangible will be amortized to expense over 10 years. The Company also incurred $370 thousand of provision for credit losses on credit marks from the loans acquired. Expenses associated with the branch acquisition of the Cadence Branches were $232 thousand and $444 thousand for the three months and six months period ended June 30, 2022, respectively. These costs included charges associated with legal and consulting expenses, which have been expensed as incurred. The assets acquired and liabilities assumed and consideration paid in the acquisition of the Cadence Branches were recorded at their estimated fair values based on management’s best estimates using information available at the date of the acquisition and are subject to adjustment for up to one year after the closing date of the acquisition. While the fair values are not expected to be materially different from the estimates, accounting guidance provides that an acquirer must recognize adjustments to provisional amounts that are identified during the measurement period, which will run through December 3, 2022 in respect of the Cadence Branches, in the measurement period in which the adjustment amounts are determined. The acquirer must record in the financial statements, the effect on earnings of changes in depreciation, amortization or other income effects, if any, as a result of changes to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The items most susceptible to adjustment are the credit fair value adjustments on loans, core deposit intangible and the deferred income tax assets resulting from the acquisition. The following table summarizes the provisional fair values of the assets acquired and liabilities assumed and the goodwill (bargain purchase gain) generated from the transaction ($ in thousands): Purchase price: Cash $ 1,000 Total purchase price 1,000 Identifiable assets: Cash $ 359,916 Loans 40,262 Core deposit intangible 2,890 Personal and real property 9,675 Other assets 135 Total assets 412,878 Liabilities and equity: Deposits 410,171 Other liabilities 126 Total liabilities 410,297 Net assets acquired 2,581 Bargain purchase gain $ (1,581) Supplemental Pro Forma Information The following table presents certain supplemental pro forma information, for illustrative purposes only, for the six months ended June 30, 2022 and 2021 as if the Cadence Branches acquisitions had occurred on January 1, 2021. The pro forma financial information is not necessarily indicative of the results of operations had the acquisitions been effective as of this date. ($ in thousands) (unaudited) (unaudited) Pro-Forma Pro-Forma Six Months Ended Six Months Ended Net interest income $ 80,740 $ 77,279 Non-interest income 19,821 18,295 Total revenue 100,561 95,574 Income before income taxes 41,996 40,857 Supplemental pro-forma earnings were adjusted to exclude acquisition costs incurred. The Company’s operating results for the six months ended June 30, 2022, include the operating results of the acquired assets and assumed liabilities of the Cadence Branches subsequent to the acquisition date. Due to the timing of the data conversion and the integration of operations of the branches onto the Company’s existing operations, historical reporting of the acquired branches is impracticable, and therefore, disclosure of the amounts of revenue and expenses attributable to the acquired branches since the acquisition date are not available. |
EARNINGS APPLICABLE TO COMMON S
EARNINGS APPLICABLE TO COMMON SHAREHOLDERS | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS APPLICABLE TO COMMON SHAREHOLDERS | EARNINGS APPLICABLE TO COMMON SHAREHOLDERSBasic per share data is calculated based on the weighted-average number of common shares outstanding during the reporting period. Diluted per share data includes any dilution from potential common stock outstanding, such as restricted stock grants. There were no anti-dilutive common stock equivalents excluded in the calculations. The following tables disclose the reconciliation of the numerators and denominators of the basic and diluted computations applicable to common shareholders ($ in thousands, except per share amount): Three Months Ended Three Months Ended Net Income Shares Per Net Income Shares Per Basic earnings per share $ 15,753 20,507,451 $ 0.77 $ 15,600 21,018,772 $ 0.74 Effect of dilutive shares: Restricted stock grants 108,477 188,288 Diluted earnings per share $ 15,753 20,615,928 $ 0.76 $ 15,600 21,207,060 $ 0.74 For the Six Months Ended For the Six Months Ended Net Income Shares Per Net Income Shares Per Basic earnings per share $ 32,582 20,602,698 $ 1.58 $ 32,244 21,013,930 $ 1.53 Effect of dilutive shares: Restricted stock grants 122,847 182,147 Diluted earnings per share $ 32,582 20,725,545 $ 1.57 $ 32,244 21,196,077 $ 1.52 |
COMPREHENSIVE INCOME
COMPREHENSIVE INCOME | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
COMPREHENSIVE INCOME | COMPREHENSIVE INCOMEAs presented in the Consolidated Statements of Comprehensive Income, comprehensive income includes net income and other comprehensive income. The Company’s sources of other comprehensive income are unrealized gains and losses on available-for-sale securities, which are also recognized as separate components of equity. |
FINANCIAL INSTRUMENTS WITH OFF-
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | 6 Months Ended |
Jun. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. At June 30, 2022, and December 31, 2021 these financial instruments consisted of the following: ($ in thousands) June 30, 2022 December 31, 2021 Fixed Rate Variable Rate Fixed Rate Variable Rate Commitments to make loans $ 102,763 $ 5,582 $ 80,760 $ 23,946 Unused lines of credit 270,342 314,136 213,332 309,791 Standby letters of credit 4,045 9,256 2,586 9,737 Commitments to make loans are generally made for periods of 90 days or less. The fixed rate loan commitments have interest rates ranging from 1.0% to 18.0% and maturities ranging from approximately 1 year to 30 years. ALLOWANCE FOR CREDIT LOSSES (“ACL”) ON OFF BALANCE SHEET CREDIT (“OBSC”) Exposures The Company maintains a separate ACL on OBSC exposures, including unfunded commitments and letters of credit, which is included on the accompanying consolidated balance sheet as of June 30, 2022 and December 31, 2021. The ACL on OBSC exposures is adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. Changes in the ACL on OBSC exposures were as follows for the presented periods: ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Balance at beginning of period $ 1,070 $ 718 $ 1,070 $ — Adoption of ASU 326 — — — 718 Credit loss expense related to OBSC exposures 150 — 150 — Balance at end of period $ 1,220 $ 718 $ 1,220 $ 718 Adjustments to the ACL on OBSC exposures are recorded to provision for credit losses OBSC exposures. The increase in the ACL on OBSC exposures for the three and six months ended June 30, 2022 was primarily due to an increase in unfunded commitments. No credit loss estimate is reported for OBSC exposures that are unconditionally cancellable by the Company or for undrawn amounts under such arrangements that may be drawn prior to the cancellation on the arrangement. |
FAIR VALUE DISCLOSURES AND REPO
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS | 3 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS | FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the assets or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 : Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 : Significant observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, and other inputs that are observable or can be corroborated by observable market data. Level 3 : Significant unobservable inputs that reflect a company’s own assumptions about the factors that market participants would likely consider in pricing an asset or liability. The following methods and assumptions were used by the Company to estimate its financial instrument fair values disclosed at June 30, 2022 and December 31, 2021: • Investment Securities : The fair value for investment securities are determined by quoted market prices, if available (Level 1). For securities where, quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2), using matrix pricing. Matrix pricing is a mathematical technique commonly used to price debt securities that are not actively traded, valuing debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). For securities where, quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). • Loans Held for Sale : Since loans designated by the Company as available-for-sale are typically sold shortly after making the decision to sell them, realized gains or losses are usually recognized within the same period and fluctuations in fair values are not relevant for reporting purposes. If available-for-sale loans are held on our books for an extended period of time, the fair value of those loans is determined using quoted secondary-market prices. • Collateral Dependent Loans : Loans for which it is probable that the Company will not collect all principal and interest due according to contractual terms are measured for impairment. If the impaired loan is identified as collateral dependent, then the fair value method of measuring the amount of impairment is utilized. This method requires obtaining a current independent appraisal of the collateral. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by independent appraisers to adjust for differences between the comparable sales and income data available for similar loans and collateral underlying such loans. Such adjustments, if any, result in a Level 3 classification of the inputs for determining fair value. The Company generally adjusts the appraisal down by approximately 10 percent to account for cost associated with litigation and collection. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment. • Other Real Estate Owned : Other real estate owned consists of properties obtained through foreclosure. The adjustment at the time of foreclosure is recorded through the allowance for credit losses. Fair value of other real estate owned is based on current independent appraisals of the collateral less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals, which are updated no less frequently than annually. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach with data from comparable properties. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments, if any, result in a Level 3 classification of the inputs for determining fair value. In the determination of fair value subsequent to foreclosure, management also considers other factors or recent developments, such as changes in market conditions from the time of valuation and anticipated sales values considering plans for disposition, which could result in an adjustment to lower the collateral value estimates indicated in the appraisals. The Company generally adjusts the appraisal down by approximately 10 percent to account for carrying costs. Periodic revaluations are classified as Level 3 in the fair value hierarchy since assumptions are used that may not be observable in the market. Due to the subjective nature of establishing the fair value when the asset is acquired, the actual fair value of the other real estate owned or foreclosed asset could differ from the original estimate. If it is determined the fair value declines subsequent to foreclosure, a valuation allowance is recorded through other non-interest income. Operating costs associated with the assets after acquisition are also recorded as non-interest expense. Gains and losses on the disposition of other real estate owned and foreclosed assets are netted and recorded in other non-interest income. Other real estate owned is classified within Level 3 of the fair value hierarchy. Estimated fair values for the Company’s financial instruments are as follows, as of the dates noted: June 30, 2022 Carrying Estimated Fair Value Measurements ($ in thousands) Quoted Prices Significant Significant Financial Instruments: Assets: Cash and cash equivalents $ 356,771 $ 356,771 $ 356,771 $ — $ — Securities available-for-sale: U.S. Treasury 126,841 126,841 126,841 — — Obligations of U.S. government agencies and sponsored entities 158,660 158,660 — 158,660 — Municipal securities 591,818 591,818 — 573,561 18,257 Mortgage-backed securities 574,634 574,634 — 574,634 — Corporate obligations 37,294 37,294 — 37,262 32 Securities held-to-maturity 593,154 561,333 — 561,333 — Loans, net 3,092,524 3,115,862 — — 3,115,862 Accrued interest receivable 24,543 24,543 — 9,211 15,332 Liabilities: Noninterest-bearing deposits $ 822,841 $ 822,841 $ — $ 822,841 $ — Interest-bearing deposits 4,483,356 4,331,370 — 4,331,370 — Subordinated debentures 144,876 145,055 — — 145,055 Accrued interest payable 1,607 1,607 — 1,607 — December 31, 2021 Carrying Estimated Fair Value Measurements ($ in thousands) Quoted Significant Significant Financial Instruments: Assets: Cash and cash equivalents $ 919,713 $ 919,713 $ 919,713 $ — $ — Securities available-for-sale: U.S. Treasury 135,158 135,158 135,158 — — Obligations of U.S. government agencies and sponsored entities 183,021 183,021 — 183,021 — Municipal securities 708,502 708,502 — 688,379 20,123 Mortgage-backed securities 688,298 688,298 — 688,298 — Corporate obligations 36,853 36,853 — 36,810 43 Loans, net 2,928,811 2,956,297 — — 2,956,297 Accrued interest receivable 23,256 23,256 — 6,838 16,418 Liabilities: Non-interest-bearing deposits $ 756,118 $ 756,118 $ — $ 756,118 $ — Interest-bearing deposits 4,470,666 4,431,771 — 4,431,771 — Subordinated debentures 144,726 156,952 — — 156,952 Accrued interest payable 1,711 1,711 — 1,711 — Assets measured at fair value on a recurring basis are summarized below: June 30, 2022 ($ in thousands) Fair Value Fair Value Measurements Using Quoted Prices in Significant Other Significant Available-for-sale U.S. Treasury $ 126,841 $ 126,841 $ — $ — Obligations of U.S. Government agencies and sponsored entities 158,660 — 158,660 — Municipal securities 591,818 — 573,561 18,257 Mortgage-backed securities 574,634 — 574,634 — Corporate obligations 37,294 — 37,262 32 Total available-for-sale $ 1,489,247 $ 126,841 $ 1,344,117 $ 18,289 December 31, 2021 ($ in thousands) Fair Value Fair Value Measurements Using Quoted Prices in Significant Other Significant Available-for-sale U.S. Treasury $ 135,158 $ 135,158 $ — $ — Obligations of U.S. Government agencies and sponsored entities 183,021 — 183,021 — Municipal securities 708,502 — 688,379 20,123 Mortgage-backed securities 688,298 — 688,298 — Corporate obligations 36,853 — 36,810 43 Total available-for-sale $ 1,751,832 $ 135,158 $ 1,596,508 $ 20,166 The following is a reconciliation of activity for assets measured at fair value based on significant unobservable inputs (Level 3) information. Bank-Issued Trust ($ in thousands) 2022 2021 Balance, January 1 $ 43 $ 235 Paydowns (11) (55) Unrealized gain included in comprehensive income — 38 Balance at June 30 $ 32 $ 218 Municipal Securities ($ in thousands) 2022 2021 Balance, January 1 $ 20,123 $ 20,126 Purchases — 4,189 Maturities, calls and paydowns (236) (4,185) Unrealized loss included in comprehensive income (1,630) (26) Balance at June 30 $ 18,257 $ 20,104 The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a recurring basis at June 30, 2022 and December 31, 2021. The following tables present quantitative information about recurring Level 3 fair value measurements ($ in thousands): Trust Preferred Securities Fair Value Valuation Technique Significant Unobservable Range of Inputs June 30, 2022 $ 32 Discounted cash flow Probability of default 4.25% - 4.72% December 31, 2021 $ 43 Discounted cash flow Probability of default 2.35% - 2.47% Municipal Securities Fair Value Valuation Technique Significant Range of Inputs June 30, 2022 $ 18,257 Discounted cash flow Discount Rate 2.00% - 3.90% December 31, 2021 $ 20,123 Discounted cash flow Discount Rate 0.50% - 1.90% The following table presents the fair value measurement of assets measured at fair value on a non-recurring basis and the level within the fair value hierarchy in which the fair value measurements were classified at June 30, 2022 and December 31, 2021. June 30, 2022 ($ in thousands) Fair Value Measurements Using Fair Value Quoted Prices in Significant Significant Collateral dependent loans $ 2,011 $ — $ — $ 2,011 Other real estate owned 1,985 — — 1,985 December 31, 2021 ($ in thousands) Fair Value Measurements Using Fair Value Quoted Prices in Significant Significant Collateral dependent loans $ 3,564 $ — $ — $ 3,564 Other real estate owned 2,565 — — 2,565 |
SECURITIES
SECURITIES | 6 Months Ended |
Jun. 30, 2022 | |
SECURITIES | |
SECURITIES | SECURITIES The following table summarizes the amortized cost, gross unrealized gains and losses, and estimated fair values of securities available-for-sale (“AFS”) and securities held-to-maturity at June 30, 2022 and December 31, 2021. ($ in thousands) June 30, 2022 Amortized Gross Gross Estimated Available-for-sale securities: U.S. Treasury $ 135,820 $ — $ 8,979 $ 126,841 Obligations of U.S. government agencies and sponsored entities 172,020 16 13,375 158,660 Tax-exempt and taxable obligations of states and municipal subdivisions 671,353 1,126 80,661 591,818 Mortgage-backed securities - residential 368,957 71 29,201 339,827 Mortgage-backed securities - commercial 251,865 118 17,176 234,807 Corporate obligations 38,326 83 1,115 37,294 Total available-for-sale $ 1,638,341 $ 1,413 $ 150,507 $ 1,489,247 Held-to-maturity: U.S. Treasury $ 109,527 $ — $ 3,403 $ 106,124 Obligations of U.S. government agencies and sponsored entities 33,127 — 489 32,638 Tax-exempt and taxable obligations of states and municipal subdivisions 146,958 162 11,576 135,544 Mortgage-backed securities - residential 163,453 — 10,139 153,314 Mortgage-backed securities - commercial 130,089 66 5,793 124,362 Corporate obligations 10,000 — 649 9,351 Total held-to-maturity $ 593,154 $ 228 $ 32,049 $ 561,333 ($ in thousands) December 31, 2021 Amortized Gross Gross Estimated Available-for-sale securities: U.S. Treasury $ 135,889 $ 83 $ 814 $ 135,158 Obligations of U.S. government agencies sponsored entities 182,877 1,238 1,094 183,021 Tax-exempt and taxable obligations of states and municipal subdivisions 698,861 12,452 2,811 708,502 Mortgage-backed securities - residential 410,269 4,123 3,425 410,967 Mortgage-backed securities - commercial 277,353 2,917 2,939 277,331 Corporate obligations 35,904 962 13 36,853 Total available-for-sale $ 1,741,153 $ 21,775 $ 11,096 $ 1,751,832 The amortized cost and fair value of debt securities are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. ACL on Securities Securities Available for Sale Quarterly, the Company evaluates if a security has a fair value less than its amortized cost. Once these securities are identified, in order to determine whether a decline in fair value resulted from a credit loss or other factors, the Company performs further analysis as outlined below: • Review the extent to which the fair value is less than the amortized cost and determine if the decline is indicative of credit loss or other factors. • The securities that violate the credit loss trigger above would be subjected to additional analysis. • If the Company determines that a credit loss exists, the credit portion of the allowance will be measured using the discounted cash flow (“DCF”) analysis using the effective interest rate. The amount of credit loss the Company records will be limited to the amount by which the amortized cost exceeds the fair value. The allowance for the calculated credit loss will be monitored going forward for further credit deterioration or improvement. At both June 30, 2022 and December 31, 2021, the results of the analysis did not identify any securities where the decline was indicative of credit loss factors; therefore, no credit loss was recognized on any of the securities AFS. Accrued interest receivable is excluded from the estimate of credit losses for securities AFS. Accrued interest receivable totaled $7.2 million and $6.8 million at June 30, 2022 and December 31, 2021, respectively and was reported in interest receivable on the accompanying Consolidated Balance Sheet. All AFS securities were current with no securities past due or on nonaccrual as of June 30, 2022 and December 31, 2021. Securities Held to Maturity At June 30, 2022, the potential credit loss exposure was $391 thousand and consisted of tax-exempt and taxable obligations of states and municipal subdivisions and corporate obligations securities. After applying appropriate probability of default (“PD”) and loss given default (“LGD”) assumptions, the total amount of current expected credit losses was deemed immaterial. Therefore, no reserve was recorded at June 30, 2022. Accrued interest receivable is excluded from the estimate of credit losses for securities held-to-maturity. Accrued interest receivable totaled $2.0 million and $0 at June 30, 2022 and December 31, 2021, respectively and was reported in interest receivable on the accompanying Consolidated Balance Sheet. At June 30, 2022, the Company had no securities held-to-maturity that were past due 30 days or more as to principal or interest payments. The Company had no securities held-to-maturity classified as nonaccrual at June 30, 2022. The Company monitors the credit quality of the debt securities held-to-maturity through the use of credit ratings. The Company monitors the credit ratings on a quarterly basis. The following table summarizes the amortized cost of debt securities held-to-maturity at June 30, 2022, aggregated by credit quality indicators. ($ in thousands) June 30, 2022 A2 $ 1,419 Aa1/Aa2/Aa3 19,711 Aaa 446,055 Not rated 125,969 Total $ 593,154 The amortized cost and fair value of debt securities are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. ($ in thousands) June 30, 2022 Amortized Fair Available-for-sale: Due less than one year $ 27,963 $ 27,852 Due after one year through five years 269,064 257,549 Due after five years through ten years 387,471 350,647 Due greater than ten years 333,021 278,565 Mortgage-backed securities - residential 368,957 339,827 Mortgage-backed securities - commercial 251,865 234,807 Total $ 1,638,341 $ 1,489,247 Held-to-maturity: Due less than one year $ 20,798 $ 20,545 Due after one year through five years 109,904 106,351 Due after five years through ten years 35,543 33,601 Due greater than ten years 133,367 123,160 Mortgage-backed securities - residential 163,453 153,314 Mortgage-backed securities - commercial 130,089 124,362 Total $ 593,154 $ 561,333 The amortized costs of securities pledged as collateral, to secure public deposits and for other purposes, was $1.075 billion and $889.5 million at June 30, 2022 and December 31, 2021, respectively. The following table summarizes securities in an unrealized loss position for which an allowance for credit losses has not been recorded at June 30, 2022 and December 31, 2021. There were no held-to-maturity securities at December 31, 2021. The securities are aggregated by major security type and length of time in a continuous unrealized loss position: ($ in thousands) June 30, 2022 Losses < 12 Months Losses 12 Months or > Total Fair Gross Fair Gross Fair Gross Available-for-sale: U.S. Treasury $ 124,260 $ 8,794 $ 2,582 $ 185 $ 126,842 $ 8,979 Obligations of U.S. government agencies and sponsored entities 152,689 12,837 4,503 538 157,192 13,375 Tax-exempt and taxable obligations of state and municipal subdivisions 477,118 70,673 58,393 9,988 535,511 80,661 Mortgage-backed securities - residential 299,279 24,606 31,500 4,595 330,779 29,201 Mortgage-backed securities - commercial 182,312 13,954 30,647 3,222 212,959 17,176 Corporate obligations 27,684 1,111 27 4 27,711 1,115 Total $ 1,263,342 $ 131,975 $ 127,652 $ 18,532 $ 1,390,994 $ 150,507 Held-to-maturity: U.S. Treasury $ 106,124 $ 3,403 $ — $ — $ 106,124 $ 3,403 Obligations of U.S. government agencies and sponsored entities 32,638 489 — — 32,638 489 Tax-exempt and taxable obligations of state and municipal subdivisions 86,881 11,576 — — 86,881 11,576 Mortgage-backed securities - residential 153,314 10,139 — — 153,314 10,139 Mortgage-backed securities - commercial 119,649 5,793 — — 119,649 5,793 Corporate obligations 9,351 649 — — 9,351 649 Total $ 507,957 $ 32,049 $ — $ — $ 507,957 $ 32,049 ($ in thousands) December 31, 2021 Losses < 12 Months Losses 12 Months or > Total Fair Gross Fair Gross Fair Gross U.S. Treasury $ 130,098 $ 814 $ — $ — $ 130,098 $ 814 Obligations of U.S. government agencies and sponsored entities 121,402 933 5,254 161 126,656 1,094 Tax-exempt and taxable obligations of state and municipal subdivisions 249,430 2,692 3,692 119 253,122 2,811 Mortgage-backed securities - residential 284,183 3,228 8,912 197 293,095 3,425 Mortgage-backed securities - commercial 174,697 2,836 3,038 103 177,735 2,939 Corporate obligations 6,692 8 42 5 6,734 13 Total $ 966,502 $ 10,511 $ 20,938 $ 585 $ 987,440 $ 11,096 |
LOANS
LOANS | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
LOANS | LOANS The Company uses four different categories to classify loans in its portfolio based on the underlying collateral securing each loan. The loans grouped together in each category have been determined to share similar risk characteristics with respect to credit quality. Those four categories are commercial, financial and agriculture, commercial real estate, consumer real estate, consumer installment; Commercial, financial and agriculture – Commercial, financial and agriculture loans include loans to business entities issued for commercial, industrial, or other business purposes. This type of commercial loan shares a similar risk characteristic in that unlike commercial real estate loans, repayment is largely dependent on cash flow generated from the operation of the business. Commercial real estate – Commercial real estate loans are grouped as such because repayment is mainly dependent upon either the sale of the real estate, operation of the business occupying the real estate, or refinance of the debt obligation. This includes both owner-occupied and non-owner occupied CRE secured loans, because they share similar risk characteristics related to these variables. Consumer real estate – Consumer real estate loans consist primarily of loans secured by 1-4 family residential properties and/or residential lots. This includes loans for the purpose of constructing improvements on the residential property, as well as home equity lines of credit. Consumer installment – Installment and other loans are all loans issued to individuals that are not for any purpose related to operation of a business, and not secured by real estate. Repayment on these loans is mostly dependent on personal income, which may be impacted by general economic conditions. The following table shows the composition of the loan portfolio: ($ in thousands) June 30, 2022 December 31, 2021 Loans held for sale Mortgage loans held for sale $ 6,703 $ 7,678 Total LHFS $ 6,703 $ 7,678 Loans held for investment Commercial, financial and agriculture (1) $ 402,619 $ 397,516 Commercial real estate 1,810,204 1,683,698 Consumer real estate 871,051 838,654 Consumer installment 41,050 39,685 Total loans 3,124,924 2,959,553 Less allowance for credit losses (32,400) (30,742) Net LHFI $ 3,092,524 $ 2,928,811 ____________________________________________________________ (1) Loan balance includes $6.3 million and $41.1 million in Paycheck Protection Program (“PPP”) loans as of June 30, 2022 and December 31, 2021, respectively. Accrued interest receivable is not included in the amortized cost basis of the Company’s LHFI. At June 30, 2022 and December 31, 2021, accrued interest receivable for LHFI totaled $15.3 million and $16.4 million, respectively, with no related ACL and was reported in interest receivable on the accompanying consolidated balance sheet. Nonaccrual and Past Due LHFI Past due LHFI are loans contractually past due 30 days or more as to principal or interest payments. Generally, the Company will place a delinquent loan in nonaccrual status when the loan becomes 90 days or more past due. At the time a loan is placed in nonaccrual status, all interest which has been accrued on the loan but remains unpaid is reversed and deducted from earnings as a reduction of reported interest income. No additional interest is accrued on the loan balance until the collection of both principal and interest becomes reasonably certain. The following tables presents the aging of the amortized cost basis in past due loans in addition to those loans classified as nonaccrual including purchase credit deteriorated (“PCD”) loans: ($ in thousands) June 30, 2022 Past Due Past Due Nonaccrual PCD Total Total Nonaccrual Commercial, financial and agriculture (1) $ 207 $ 527 $ 335 $ — $ 1,069 $ 402,619 $ 218 Commercial real estate 1,894 — 17,733 1,402 21,029 1,810,204 1,487 Consumer real estate 1,437 — 2,928 1,276 5,641 871,051 90 Consumer installment 194 — 4 — 198 41,050 — Total $ 3,732 $ 527 $ 21,000 $ 2,678 $ 27,937 $ 3,124,924 $ 1,795 ___________________________________________________________ (1) Total loan balance includes $6.3 million in PPP loans as of June 30, 2022. December 31, 2021 ($ in thousands) Past Due Past Due 90 Nonaccrual PCD Total Total Nonaccrual Commercial, financial and agriculture (1) $ 246 $ — $ 190 $ — $ 436 $ 397,516 $ — Commercial real estate 453 — 19,445 2,082 21,980 1,683,698 1,661 Consumer real estate 2,140 45 3,776 2,512 8,473 838,654 1,488 Consumer installment 121 — 7 1 129 39,685 — Total $ 2,960 $ 45 $ 23,418 $ 4,595 $ 31,018 $ 2,959,553 $ 3,149 ___________________________________________________________ (1) Total loan balance includes $41.1 million in PPP loans as of December 31, 2021. Acquired Loans As of June 30, 2022, and December 31, 2021 the amortized cost of the Company’s PCD loans totaled $6.2 million and $8.6 million, respectively, which had an estimated ACL of $584 thousand and $855 thousand, respectively. Troubled Debt Restructurings If the Company grants a concession to a borrower for economic or legal reasons related to a borrower’s financial difficulties that it would not otherwise consider, the loan is classified as TDRs. In response to the Coronavirus Disease 2019 (“COVID-19”) pandemic and its economic impact to its customers, the Company implemented a short-term modification program in accordance with interagency regulatory guidance to provide temporary payment relief to those borrowers directly impacted by COVID-19 who were not more than 30 days past due at the time of the modification. This program allowed for a deferral of payments for up two successive 90-day periods for a cumulative maximum of 180 days. Pursuant to interagency guidance, such short-term deferrals are not deemed to meet the criteria for reporting as TDRs. For borrowers requiring a longer-term modification following the short-term loan modification program the Company worked with these borrowers whose loans were not more than 30 days past due at December 31, 2019 and who required modification as a result of COVID-19 to modify such loans under Section 4013 of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). As of June 30, 2022, and December 31, 2021, the Company had TDRs totaling $21.1 million and $24.2 million, respectively. As of June 30, 2022, the Company had no additional amount committed on any loan classified as TDR. As of June 30, 2022, and December 31, 2021, TDRs had a related ACL of $3.8 million and $4.3 million, respectively. The following table presents LHFI by class modified as TDRs that occurred during the three and six months ended June 30, 2022 and 2021. ($ in thousands, except for number of loans) Three Months Ended June 30, 2022 Number of Outstanding Outstanding Commercial, financial and agriculture 1 $ 15 $ 15 Total 1 $ 15 $ 15 2021 Commercial real estate 2 $ 237 $ 237 Consumer real estate 1 $ 54 $ 44 Total 3 $ 291 $ 281 The TDRs presented above increased the ACL $0 and $21 thousand and resulted in no charge-offs for the three months period ended June 30, 2022 and 2021, respectively. ($ in thousands, except for number of loans) Six Months Ended June 30, 2022 Number of Outstanding Outstanding Commercial, financial and agriculture 1 $ 15 $ 15 Total 1 $ 15 $ 15 2021 Commercial real estate 2 $ 237 $ 237 Consumer real estate 1 $ 54 $ 44 Total 3 $ 291 $ 281 The TDRs presented above increased the ACL $0 and $21 thousand and resulted in no charge-offs for the six months period ended June 30, 2022 and 2021, respectively. The following table presents loans by class modified as TDRs for which there was a payment default within twelve months following the modification ($ in thousands, except for number of loans). Troubled Debt Restructurings That Subsequently Defaulted: Six Months Ended June 30, 2022 2021 Number of Recorded Number of Recorded Commercial real estate 3 $ 4,562 3 $ 1,027 Consumer real estate 3 133 1 44 Total 6 $ 4,695 4 $ 1,071 The modifications described above included one of the following or a combination of the following: maturity date extensions, interest only payments, amortizations were extended beyond what would be available on similar type loans, and payment waiver. No interest rate concessions were given on these loans nor were any of these loans written down. A loan is considered to be in a payment default once it is 30 days contractually past due under the modified terms. The TDRs presented above increased the ACL $1.5 million and $238 thousand and resulted in no charge-offs for the six months period ended June 30, 2022 and 2021, respectively. The following tables represents the Company’s TDRs at June 30, 2022 and December 31, 2021: June 30, 2022 Current Past Due Past Due 90 Nonaccrual Total ($ in thousands) Commercial, financial and agriculture $ 15 $ — $ — $ 65 $ 79 Commercial real estate 3,142 — — 15,849 18,991 Consumer real estate 1,157 — — 902 2,059 Consumer installment 15 — — — 15 Total $ 4,329 $ — $ — $ 16,816 $ 21,144 Allowance for credit losses $ 53 $ — $ — $ 3,778 $ 3,831 December 31, 2021 Current Past Due Past Due 90 Nonaccrual Total ($ in thousands) Commercial, financial and agriculture $ 63 $ — $ — $ 107 $ 170 Commercial real estate 3,367 — — 16,858 20,225 Consumer real estate 1,772 — — 1,973 3,745 Consumer installment 18 — — — 18 Total $ 5,220 $ — $ — $ 18,938 $ 24,158 Allowance for credit losses $ 90 $ — $ — $ 4,217 $ 4,307 Collateral Dependent Loans The following table presents the amortized cost basis of collateral dependent individually evaluated loans by class of loans as of June 30, 2022 and December 31, 2021: June 30, 2022 ($ in thousands) Real Property Equipment Total Commercial, financial and agriculture $ — $ 218 $ 218 Commercial real estate 1,487 — 1,487 Consumer real estate 312 — 312 Total $ 1,799 $ 218 $ 2,017 December 31, 2021 ($ in thousands) Real Property Total Commercial real estate $ 1,712 $ 1,712 Consumer real estate 1,858 1,858 Total $ 3,570 $ 3,570 A loan is collateral dependent when the borrower is experiencing financial difficulty and repayment of the loan is expected to be provided substantially through the sale of the collateral. The following provides a qualitative description by class of loan of the collateral that secures the Company’s collateral-dependent LHFI: • Commercial, financial and agriculture – Loans within these loan classes are secured by equipment, inventory accounts, and other non-real estate collateral. • Commercial real estate – Loans within these loan classes are secured by commercial real property. • Consumer real estate - Loans within these loan classes are secured by consumer real property. • Consumer installment - Loans within these loan classes are secured by consumer goods, equipment, and non-real estate collateral. There have been no significant changes to the collateral that secures these financial assets during the period. Loan Participations The Company has loan participations, which qualify as participating interest, with other financial institutions. As of June 30, 2022, these loans totaled $148.6 million, of which $62.4 million had been sold to other financial institutions and $86.2 million was purchased by the Company. As of December 31, 2021, these loans totaled $118.4 million, of which $77.8 million had been sold to other financial institutions and $40.6 million was purchased by the Company. The loan participations convey proportionate ownership rights with equal priority to each participating interest holder; involving no recourse (other than ordinary representations and warranties) to, or subordination by, any participating interest holder; all cash flows are divided among the participating interest holders in proportion to each holder’s share of ownership; and no holder has the right to pledge the entire financial asset unless all participating interest holders agree. Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually to classify the loans as to credit risk. The Company uses the following definitions for risk ratings: Pass: Loan classified as pass are deemed to possess average to superior credit quality, requiring no more than normal attention. Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company’s credit position at some future date. Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful: Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. These above classifications were the most current available as of June 30, 2022, and were generally updated within the prior year. The tables below present the amortized cost basis of loans by credit quality indicator and class of loans based on the most recent analysis performed at June 30, 2022 and December 31, 2021. Revolving loans converted to term as of the six months ended June 30, 2022 and December 31, 2021 were not material to the total loan portfolio. As of June 30, 2022 Term Loans Amortized Cost Basis by Origination Year Revolving Total ($ in thousands) 2022 2021 2020 2019 2018 Prior Commercial, financial and agriculture: Risk Rating Pass $ 78,092 $ 118,432 $ 50,598 $ 46,425 $ 46,582 $ 60,811 $ 66 $ 401,006 Special mention — — 218 336 — 416 — 970 Substandard 35 40 — 47 50 471 — 643 Doubtful — — — — — — — — Total commercial, financial and agriculture $ 78,126 $ 118,472 $ 50,816 $ 46,808 $ 46,632 $ 61,698 $ 66 $ 402,619 Commercial real estate: Risk Rating Pass $ 288,699 $ 417,922 $ 283,843 $ 185,986 $ 149,012 $ 396,464 $ — $ 1,721,925 Special mention — 1,309 2,269 1,725 6,911 13,889 — 26,104 Substandard — 4,973 2,761 2,284 16,362 35,121 — 61,501 Doubtful — — — — — 675 — 675 Total commercial real estate $ 288,699 $ 424,204 $ 288,874 $ 189,995 $ 172,284 $ 446,149 $ — $ 1,810,204 Consumer real estate: Risk Rating Pass $ 139,239 $ 224,599 $ 135,559 $ 56,347 $ 55,459 $ 144,043 $ 99,869 $ 855,114 Special mention — — — 201 26 3,028 — 3,254 Substandard 53 424 420 653 2,569 7,145 1,418 12,683 Doubtful — — — — — — — — Total consumer real estate $ 139,292 $ 225,023 $ 135,978 $ 57,201 $ 58,053 $ 154,215 $ 101,287 $ 871,051 Consumer installment: Risk Rating Pass $ 10,954 $ 13,170 $ 6,613 $ 2,895 $ 998 $ 1,853 $ 4,502 $ 40,986 Special mention — — — — — — — — Substandard 22 4 23 2 3 9 — 63 Doubtful — — — — — — — — Total consumer installment $ 10,976 $ 13,175 $ 6,636 $ 2,897 $ 1,001 $ 1,863 $ 4,502 $ 41,050 Total Pass $ 516,984 $ 774,123 $ 476,613 $ 291,654 $ 252,050 $ 603,170 $ 104,438 $ 3,019,031 Special mention — 1,309 2,488 2,261 6,937 17,333 — 30,328 Substandard 109 5,441 3,204 2,986 18,984 42,746 1,418 74,890 Doubtful — — — — — 675 — 675 Total $ 517,093 $ 780,874 $ 482,304 $ 296,901 $ 277,971 $ 663,924 $ 105,856 $ 3,124,924 As of December 31, 2021 Term Loans Amortized Cost Basis by Origination Year Revolving Total ($ in thousands) 2021 2020 2019 2018 2017 Prior Commercial, financial and: agriculture Risk Rating Pass $ 152,798 $ 60,106 $ 52,802 $ 47,988 $ 22,083 $ 43,773 $ 178 $ 379,728 Special mention — 255 749 90 481 29 — 1,604 Substandard — — 1,398 6,184 360 8,242 — 16,184 Doubtful — — — — — — — — Total commercial, financial and agriculture $ 152,798 $ 60,361 $ 54,949 $ 54,262 $ 22,924 $ 52,044 $ 178 $ 397,516 Commercial real estate: Risk Rating Pass $ 402,284 $ 313,288 $ 207,879 $ 177,943 $ 134,234 $ 332,588 $ — $ 1,568,216 Special mention 1,326 2,259 1,782 15,076 2,779 15,519 — 38,741 Substandard 3,904 3,189 1,931 17,147 18,814 31,756 — 76,741 Doubtful — — — — — — — — Total commercial real estate $ 407,514 $ 318,736 $ 211,592 $ 210,166 $ 155,827 $ 379,863 $ — $ 1,683,698 Consumer real estate: Risk Rating Pass $ 243,340 $ 164,359 $ 70,465 $ 66,940 $ 51,988 $ 121,238 $ 98,444 $ 816,774 Special mention — — 331 26 1,746 1,949 — 4,052 Substandard 444 532 1,280 3,410 1,288 9,241 1,633 17,828 Doubtful — — — — — — — — Total consumer real estate $ 243,784 $ 164,891 $ 72,076 $ 70,376 $ 55,022 $ 132,428 $ 100,077 $ 838,654 Consumer installment: Risk Rating Pass $ 17,980 $ 9,245 $ 4,222 $ 1,645 $ 1,088 $ 1,758 $ 3,697 $ 39,635 Special mention — — — — 1 — — 1 Substandard — 26 3 5 8 7 — 49 Doubtful — — — — — — — — Total consumer installment $ 17,980 $ 9,271 $ 4,225 $ 1,650 $ 1,097 $ 1,765 $ 3,697 $ 39,685 Total Pass $ 816,402 $ 546,998 $ 335,368 $ 294,516 $ 209,393 $ 499,357 $ 102,319 $ 2,804,353 Special mention 1,326 2,514 2,862 15,192 5,007 17,497 — 44,398 Substandard 4,348 3,747 4,612 26,746 20,470 49,246 1,633 110,802 Doubtful — — — — — — — — Total $ 822,076 $ 553,259 $ 342,842 $ 336,454 $ 234,870 $ 566,100 $ 103,952 $ 2,959,553 Allowance for Credit Losses The ACL is a valuation account that is deducted from loans’ amortized cost basis to present the net amount expected to be collected on the loans. It is comprised of a general allowance for loans that are collectively assessed in pools with similar risk characteristics and a specific allowance for individually assessed loans. The allowance is continuously monitored by management to maintain a level adequate to absorb expected losses inherent in the loan portfolio. The ACL represents the estimated losses for financial assets accounted for on an amortized cost basis. Expected losses are calculated using relevant information, from internal and external sources, about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environment conditions, such as changes in unemployment rates, property values, or other relevant factors. Management may selectively apply external market data to subjectively adjust the Company’s own loss history including index or peer data. Expected losses are estimated over the contractual term of the loans, adjusted for expected prepayments. The contractual term excludes expected extensions, renewals, and modifications. Loans are charged-off against the allowance when management believes the uncollectibility of a loan balance is confirmed and recoveries are credited to the allowance when received. Expected recovery amounts may not exceed the aggregate of amounts previously charged-off. The ACL is measured on a collective basis when similar risk characteristics exist. Generally, collectively assessed loans are grouped by call code (segments). Segmenting loans by call code will group loans that contain similar types of collateral, purposes, and are usually structured with similar terms making each loan’s risk profile very similar to the rest in that segment. Each of these segments then flows up into one of the four bands (bands), Commercial, Financial, and Agriculture, Commercial Real Estate, Consumer Real Estate, and Consumer Installment. In accordance with the guidance in ASC 326, the Company redefined its LHFI portfolio segments and related loan classes based on the level at which risk is monitored within the ACL methodology. Construction loans for 1-4 family residential properties with a call code 1A1, and other construction, all land development and other land loans with a call code 1A2 were previously separated between the Commercial Real Estate or Consumer Real Estate bands based on loan type code. Under our ASC 326 methodology 1A1 loans are all defined as part of the Consumer Real Estate band and 1A2 loans are all defined as part of the Commercial Real Estate Band. The probability of default (“PD”) calculation analyzes the historical loan portfolio over the given lookback period to identify, by segment, loans that have defaulted. A default is defined as a loan that has moved to past due 90 days and greater, nonaccrual status, or experienced a charge-off during the period. The model observes loans over a 12-month window, detecting any events previously defined. This information is then used by the model to calculate annual iterative count-based PD rates for each segment. This process is then repeated for all dates within the historical data range. These averaged PD’s are used for an immediate reversion back to the historical mean. The historical data used to calculate this input was captured by the Company from 2009 through the most recent quarter end. The Company utilizes reasonable and supportable forecasts of future economic conditions when estimating the ACL on loans. The model’s calculation also includes a 24-month forecasted PD based on a regression model that calculated a comparison of the Company’s historical loan data to various national economic metrics during the same periods. The results showed the Company’s past losses having a high rate of correlation to unemployment, both regionally and nationally. Using this information, along with the most recently published Wall Street Journal survey of sixty economists’ forecasts predicting unemployment rates out over the next eight quarters, a corresponding future PD can be calculated for the forward-looking 24-month period. This data can also be used to predict loan losses at different levels of stress, including a baseline, adverse and severely adverse economic condition. After the forecast period, PD rates revert to the historical mean of the entire data set. The LGD calculation is based on actual losses (charge-offs, net recoveries) at a loan level experienced over the entire lookback period aggregated to get a total for each segment of loans. The aggregate loss amount is divided by the exposure at default to determine an LGD rate. Defaults occurring during the lookback period are included in the denominator, whether a loss occurred or not and exposure at default is determined by the loan balance immediately preceding the default event. If there is not a minimum of five past defaults in a loan segment, or less than 15.0% calculated LGD rate, or the total balance at default is less than 1% of the balance in the respective call code as of the model run date, a proxy index is used. This index is proprietary to the Company’s ACL modeling vendor derived from loss data of other client institutions similar in organization structure to the Company. The vendor also provides a “crisis” index derived from loss data between the post-recessionary years of 2008-2013 that the Company uses. The model then uses these inputs in a non-discounted version of DCF methodology to calculate the quantitative portion of estimated losses. The model creates loan level amortization schedules that detail out the expected monthly payments for a loan including estimated prepayments and payoffs. These expected cash flows are discounted back to present value using the loan’s coupon rate instead of the effective interest rate. On a quarterly basis, the Company uses internal credit portfolio data, such as changes in portfolio volume and composition, underwriting practices, and levels of past due loans, nonaccruals and classified assets along with other external information not used in the quantitative calculation to determine if any subjective qualitative adjustments are required so that all significant risks are incorporated to form a sufficient basis to estimate credit losses. The following table presents the activity in the allowance for credit losses by portfolio segment for the three and six months ended June 30, 2022 and 2021: ($ in thousands) Three Months Ended June 30, 2022 Commercial, Commercial Consumer Consumer Total Allowance for credit losses: Beginning balance $ 4,874 $ 17,773 $ 8,492 $ 481 $ 31,620 Provision for credit losses (313) 629 62 72 450 Loans charged-off (94) (24) (140) (168) (426) Recoveries 44 290 338 84 756 Total ending allowance balance $ 4,511 $ 18,668 $ 8,752 $ 469 $ 32,400 ($ in thousands) Six Months Ended June 30, 2022 Commercial, Commercial Consumer Consumer Total Allowance for credit losses: Beginning balance $ 4,873 $ 17,552 $ 7,889 $ 428 $ 30,742 Provision for credit losses (313) 629 62 72 450 Loans charged-off (146) (27) (147) (337) (657) Recoveries 97 514 948 306 1,865 Total ending allowance balance $ 4,511 $ 18,668 $ 8,752 $ 469 $ 32,400 ($ in thousands) Three Months Ended June 30, 2021 Commercial, Commercial Consumer Consumer Total Allowance for credit losses: Beginning balance $ 4,158 $ 17,578 $ 10,280 $ 647 $ 32,663 Provision for credit losses — — — — — Loans charged-off (490) (166) (124) (108) (888) Recoveries 242 161 183 96 682 Total ending allowance balance $ 3,910 $ 17,573 $ 10,339 $ 635 $ 32,457 ($ in thousands) Six Months Ended June 30, 2021 Commercial, Commercial Consumer Consumer Total Allowance for credit losses: Beginning balance $ 6,214 $ 24,319 $ 4,736 $ 551 $ 35,820 Impact of ASC 326 adoption on non-PCD loans (1,319) (4,607) 5,257 (49) (718) Impact of ASC 326 adoption on PCD loans 166 575 372 2 1,115 Provision for credit losses — — — — — Loans charged-off (1,476) (3,007) (263) (265) (5,011) Recoveries 325 293 237 396 1,251 Total ending allowance balance $ 3,910 $ 17,573 $ 10,339 $ 635 $ 32,457 The Company recorded a $450 thousand provision for credit losses for the six months ended June 30, 2022, compared to no provision for the same period in 2021. The $450 thousand provision for credit losses is primarily attributed to an increase in total loans held for investment. The Company determined that no provision adjustment was necessary at June 30, 2021 due to the improved macroeconomic outlook. The following table provides the ending balance in the Company’s LHFI and the ACL, broken down by portfolio segment as of June 30, 2022 and December 31, 2021 ($ in thousands). June 30, 2022 Commercial, Commercial Consumer Consumer Total LHFI Individually evaluated $ 218 $ 1,487 $ 312 $ — $ 2,017 Collectively evaluated 402,401 1,808,717 870,739 41,050 3,122,907 Total $ 402,619 $ 1,810,204 $ 871,051 $ 41,050 $ 3,124,924 Allowance for Credit Losses Individually evaluated $ — $ — $ 6 $ — $ 6 Collectively evaluated 4,511 18,668 8,746 469 32,394 Total $ 4,511 $ 18,668 $ 8,752 $ 469 $ 32,400 December 31, 2021 Commercial, Commercial Consumer Consumer Total LHFI Individually evaluated $ — $ 1,712 $ 1,858 $ — $ 3,570 Collectively evaluated 397,516 1,681,986 836,796 39,685 2,955,983 Total $ 397,516 $ 1,683,698 $ 838,654 $ 39,685 $ 2,959,553 Allowance for Credit Losses Individually evaluated $ — $ 4 $ 2 $ — $ 6 Collectively evaluated 4,873 17,548 7,887 428 30,736 Total $ 4,873 $ 17,552 $ 7,889 $ 428 $ 30,742 |
COVID-19 UPDATE
COVID-19 UPDATE | 6 Months Ended |
Jun. 30, 2022 | |
Unusual or Infrequent Items, or Both [Abstract] | |
COVID-19 UPDATE | COVID-19 UPDATE The COVID-19 pandemic continues to have significant effects on global markets, supply chains, businesses and communities. COVID-19 could potentially impact the Company’s future financial condition and results of operations including but not limited to additional credit loss reserves, additional collateral and/or modifications to debt obligations, liquidity, limited dividend payouts or potential shortages of personnel. The pandemic is having an adverse impact on certain industries the Company serves, including hotels, restaurants, retail, and direct energy. As of June 30, 2022, the Company’s aggregate outstanding exposure in these segments was $526.9 million. While it is still not yet possible to know the full effect that the pandemic will have on the economy, or to what extent this crisis will continue to impact the Company, all available current industry statistics and internal monitoring of loan repayment ability and payment forgiveness across the portfolio has been analyzed in an attempt to understand the correlation with asset quality and degree of possible deterioration. It is unknown how long the adverse conditions associated with the COVID-19 pandemic will last and what the complete financial effect will be to the Company. It is reasonably possible that estimates made in the financial statements could be materially and adversely impacted in the near term as a result of these conditions, including the determination of the allowance for credit losses, fair value of financial instruments, impairment of goodwill and other intangible assets and income taxes. |
RECLASSIFICATION
RECLASSIFICATION | 6 Months Ended |
Jun. 30, 2022 | |
RECLASSIFICATION | |
RECLASSIFICATION | RECLASSIFICATIONCertain amounts in the 2021 financial statements have been reclassified for comparative purposes to conform to the current period financial statement presentation. |
SUBSEQUENT EVENTS_OTHER
SUBSEQUENT EVENTS/OTHER | 3 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS/OTHER | SUBSEQUENT EVENTS/OTHER Heritage Southeast Bank On July 27, 2022, the Company entered into an Agreement and Plan of Merger (the "HSBI Merger Agreement") with Heritage Southeast Bancorporation, Inc., a Georgia corporation ("HSBI"), whereby HSBI will be merged with and into the Company. Pursuant to and simultaneously with entering into the HSBI Merger Agreement, The First Bank and HSBI's wholly owned subsidiary bank, Heritage Southeast Bank, entered into a Plan of Bank Merger whereby Heritage Southeast Bank will be merged with and into The First immediately following the merger of HSBI with and into the Company. Each share of HSBI common stock will, at the effective time of the transaction, be converted into 0.965 of a share of Company common stock, representing a purchase price, as of the announcement date, of approximately $207.0 million. At June 30, 2022, HSBI had approximately $1.7 billion in assets, $1.1 billion in loans, and $1.5 billion in deposits. The closing of the transactions contemplated by the HSBI Merger Agreement is subject to the satisfaction of customary closing conditions, including regulatory approvals and the approval of the shareholders of each of the Company and HSBI. Beach Bancorp, Inc. On August 1, 2022, the Company completed its acquisition of Beach Bancorp, Inc. ("BBI") pursuant to an Agreement and Plan of Merger dated April 26, 2022 by and between the Company and BBI (the "BBI Merger Agreement"). Upon the completion of the merger of BBI with and into the Company, Beach Bank, BBI's wholly-owned subsidiary, was merged with and into The First Bank. Under the terms of the BBI Merger Agreement, each share of BBI common stock and each share of BBI preferred stock was converted into the right to receive 0.1711 of a share of Company common stock (the "BBI Exchange Ratio"), and all stock options awarded under the BBI equity plans were converted automatically into an option to purchase shares of Company common stock on the same terms and conditions as applicable to each such BBI option as in effect immediately prior to the effective time, with the number of shares underlying each such option and the applicable exercise price adjusted based on the BBI Exchange Ratio. The BBI merger provides the opportunity for the Company to expand its operations in the Florida panhandle and enter the Tampa market. The Company paid consideration of approximately $101.5 million to the former BBI shareholders including 3,498,936 shares of the Company's common stock and approximately $1 thousand in cash in lieu of fractional shares, and also assumed options entitling the owners thereof to purchase an additional 310,427 shares of the Company's common stock. At June 30, 2022, BBI had approximately $619.3 million in total assets, total loans $485.5 million, and $486.1 million in total deposits. The purchase price allocation and certain fair value measurements are not complete due to the timing of the closing of the BBI Merger. Due to the recent closing, management remains in the early stages of reviewing the estimated fair values and evaluating the assumed tax positions of the BBI Merger. Pro-forma financial information is not available to be disclosed due to the timing of the closing of the BBI Merger. |
Accounting Changes and Error Co
Accounting Changes and Error Corrections (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements, Policy | Effect of Recently Adopted Accounting Standards In November 2021, FASB issued Accounting Standard Update (“ASU”) No. 2021-10, Government Assistance (Topic 832): “Disclosures by Business Entities about Government Assistance.” These amendments are expected to increase transparency in financial reporting by requiring business entities to disclose information about certain types of government assistance they receive. The Company adopted ASU 2021-10 effective January 1, 2022. Adoption of ASU 2021-10 did not have a material impact to the Company’s consolidated financial statements. New Accounting Standards That Have Not Yet Been Adopted In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-04, Reference Rate Reform (ASC 848): “Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This ASU provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. It is intended to help stakeholders during the global market-wide reference rate transition period. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022. The Company is assessing ASU 2020-04 and its impact on the Company’s transition away from LIBOR for its loan and other financial instruments. In October 2021, FASB issued ASU No. 2021-08, Business Combination (Topic 805): “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” This ASU requires entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. The amendment improves comparability after the business combination by providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. This ASU is effective for the Company after December 15, 2022. The Company is assessing ASU 2021-08 and its impact on the Company’s consolidated financial statements. In March 2022, FASB issued ASU No. 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.” These amendments eliminate the TDR recognition and measurement guidance and instead require that an entity evaluate whether the modification represents a new loan or a continuation of an existing loan. The amendments also enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. For public business entities, these amendments require that an entity disclose current period gross write-offs by year of origination for financing receivables and net investment in leases within the scope of Subtopic 326-20. Gross write-off information must be included in the vintage disclosures required for public business entities in accordance with paragraph 326-20-50-6, which requires that an entity disclose the amortized cost basis of financing receivables by credit quality indicator and class of financing receivable by year of origination. This ASU is effective for the Company after December 15, 2022. The Company is assessing ASU 2022-02 and its impact on the Company’s consolidated financial statements. |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the provisional fair values of the assets acquired and liabilities assumed and the goodwill (bargain purchase gain) generated from the transaction ($ in thousands): Purchase price: Cash $ 1,000 Total purchase price 1,000 Identifiable assets: Cash $ 359,916 Loans 40,262 Core deposit intangible 2,890 Personal and real property 9,675 Other assets 135 Total assets 412,878 Liabilities and equity: Deposits 410,171 Other liabilities 126 Total liabilities 410,297 Net assets acquired 2,581 Bargain purchase gain $ (1,581) |
Business Acquisition, Pro Forma Information | The following table presents certain supplemental pro forma information, for illustrative purposes only, for the six months ended June 30, 2022 and 2021 as if the Cadence Branches acquisitions had occurred on January 1, 2021. The pro forma financial information is not necessarily indicative of the results of operations had the acquisitions been effective as of this date. ($ in thousands) (unaudited) (unaudited) Pro-Forma Pro-Forma Six Months Ended Six Months Ended Net interest income $ 80,740 $ 77,279 Non-interest income 19,821 18,295 Total revenue 100,561 95,574 Income before income taxes 41,996 40,857 |
EARNINGS APPLICABLE TO COMMON_2
EARNINGS APPLICABLE TO COMMON SHAREHOLDERS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Reconciliation of Numerators and Denominators of Basic and Diluted Computations Applicable to Common Shareholders | The following tables disclose the reconciliation of the numerators and denominators of the basic and diluted computations applicable to common shareholders ($ in thousands, except per share amount): Three Months Ended Three Months Ended Net Income Shares Per Net Income Shares Per Basic earnings per share $ 15,753 20,507,451 $ 0.77 $ 15,600 21,018,772 $ 0.74 Effect of dilutive shares: Restricted stock grants 108,477 188,288 Diluted earnings per share $ 15,753 20,615,928 $ 0.76 $ 15,600 21,207,060 $ 0.74 For the Six Months Ended For the Six Months Ended Net Income Shares Per Net Income Shares Per Basic earnings per share $ 32,582 20,602,698 $ 1.58 $ 32,244 21,013,930 $ 1.53 Effect of dilutive shares: Restricted stock grants 122,847 182,147 Diluted earnings per share $ 32,582 20,725,545 $ 1.57 $ 32,244 21,196,077 $ 1.52 |
FINANCIAL INSTRUMENTS WITH OF_2
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
Schedule of financial instruments with off-balance sheet risk | The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. At June 30, 2022, and December 31, 2021 these financial instruments consisted of the following: ($ in thousands) June 30, 2022 December 31, 2021 Fixed Rate Variable Rate Fixed Rate Variable Rate Commitments to make loans $ 102,763 $ 5,582 $ 80,760 $ 23,946 Unused lines of credit 270,342 314,136 213,332 309,791 Standby letters of credit 4,045 9,256 2,586 9,737 |
Schedule of changes in the ACL on OBSC exposures | Changes in the ACL on OBSC exposures were as follows for the presented periods: ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Balance at beginning of period $ 1,070 $ 718 $ 1,070 $ — Adoption of ASU 326 — — — 718 Credit loss expense related to OBSC exposures 150 — 150 — Balance at end of period $ 1,220 $ 718 $ 1,220 $ 718 |
FAIR VALUE DISCLOSURES AND RE_2
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of estimated fair values | Estimated fair values for the Company’s financial instruments are as follows, as of the dates noted: June 30, 2022 Carrying Estimated Fair Value Measurements ($ in thousands) Quoted Prices Significant Significant Financial Instruments: Assets: Cash and cash equivalents $ 356,771 $ 356,771 $ 356,771 $ — $ — Securities available-for-sale: U.S. Treasury 126,841 126,841 126,841 — — Obligations of U.S. government agencies and sponsored entities 158,660 158,660 — 158,660 — Municipal securities 591,818 591,818 — 573,561 18,257 Mortgage-backed securities 574,634 574,634 — 574,634 — Corporate obligations 37,294 37,294 — 37,262 32 Securities held-to-maturity 593,154 561,333 — 561,333 — Loans, net 3,092,524 3,115,862 — — 3,115,862 Accrued interest receivable 24,543 24,543 — 9,211 15,332 Liabilities: Noninterest-bearing deposits $ 822,841 $ 822,841 $ — $ 822,841 $ — Interest-bearing deposits 4,483,356 4,331,370 — 4,331,370 — Subordinated debentures 144,876 145,055 — — 145,055 Accrued interest payable 1,607 1,607 — 1,607 — December 31, 2021 Carrying Estimated Fair Value Measurements ($ in thousands) Quoted Significant Significant Financial Instruments: Assets: Cash and cash equivalents $ 919,713 $ 919,713 $ 919,713 $ — $ — Securities available-for-sale: U.S. Treasury 135,158 135,158 135,158 — — Obligations of U.S. government agencies and sponsored entities 183,021 183,021 — 183,021 — Municipal securities 708,502 708,502 — 688,379 20,123 Mortgage-backed securities 688,298 688,298 — 688,298 — Corporate obligations 36,853 36,853 — 36,810 43 Loans, net 2,928,811 2,956,297 — — 2,956,297 Accrued interest receivable 23,256 23,256 — 6,838 16,418 Liabilities: Non-interest-bearing deposits $ 756,118 $ 756,118 $ — $ 756,118 $ — Interest-bearing deposits 4,470,666 4,431,771 — 4,431,771 — Subordinated debentures 144,726 156,952 — — 156,952 Accrued interest payable 1,711 1,711 — 1,711 — |
Schedule of assets measured at fair value on a recurring basis | Assets measured at fair value on a recurring basis are summarized below: June 30, 2022 ($ in thousands) Fair Value Fair Value Measurements Using Quoted Prices in Significant Other Significant Available-for-sale U.S. Treasury $ 126,841 $ 126,841 $ — $ — Obligations of U.S. Government agencies and sponsored entities 158,660 — 158,660 — Municipal securities 591,818 — 573,561 18,257 Mortgage-backed securities 574,634 — 574,634 — Corporate obligations 37,294 — 37,262 32 Total available-for-sale $ 1,489,247 $ 126,841 $ 1,344,117 $ 18,289 December 31, 2021 ($ in thousands) Fair Value Fair Value Measurements Using Quoted Prices in Significant Other Significant Available-for-sale U.S. Treasury $ 135,158 $ 135,158 $ — $ — Obligations of U.S. Government agencies and sponsored entities 183,021 — 183,021 — Municipal securities 708,502 — 688,379 20,123 Mortgage-backed securities 688,298 — 688,298 — Corporate obligations 36,853 — 36,810 43 Total available-for-sale $ 1,751,832 $ 135,158 $ 1,596,508 $ 20,166 |
Schedule of reconciliation of activity for assets measured at fair value based on significant unobservable inputs (Level 3) | The following is a reconciliation of activity for assets measured at fair value based on significant unobservable inputs (Level 3) information. Bank-Issued Trust ($ in thousands) 2022 2021 Balance, January 1 $ 43 $ 235 Paydowns (11) (55) Unrealized gain included in comprehensive income — 38 Balance at June 30 $ 32 $ 218 Municipal Securities ($ in thousands) 2022 2021 Balance, January 1 $ 20,123 $ 20,126 Purchases — 4,189 Maturities, calls and paydowns (236) (4,185) Unrealized loss included in comprehensive income (1,630) (26) Balance at June 30 $ 18,257 $ 20,104 |
Schedule of quantitative information about recurring Level 3 fair value measurements | The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a recurring basis at June 30, 2022 and December 31, 2021. The following tables present quantitative information about recurring Level 3 fair value measurements ($ in thousands): Trust Preferred Securities Fair Value Valuation Technique Significant Unobservable Range of Inputs June 30, 2022 $ 32 Discounted cash flow Probability of default 4.25% - 4.72% December 31, 2021 $ 43 Discounted cash flow Probability of default 2.35% - 2.47% Municipal Securities Fair Value Valuation Technique Significant Range of Inputs June 30, 2022 $ 18,257 Discounted cash flow Discount Rate 2.00% - 3.90% December 31, 2021 $ 20,123 Discounted cash flow Discount Rate 0.50% - 1.90% |
Schedule of fair value measurement of assets measured at fair value on a non-recurring basis and the level within the fair value hierarchy | The following table presents the fair value measurement of assets measured at fair value on a non-recurring basis and the level within the fair value hierarchy in which the fair value measurements were classified at June 30, 2022 and December 31, 2021. June 30, 2022 ($ in thousands) Fair Value Measurements Using Fair Value Quoted Prices in Significant Significant Collateral dependent loans $ 2,011 $ — $ — $ 2,011 Other real estate owned 1,985 — — 1,985 December 31, 2021 ($ in thousands) Fair Value Measurements Using Fair Value Quoted Prices in Significant Significant Collateral dependent loans $ 3,564 $ — $ — $ 3,564 Other real estate owned 2,565 — — 2,565 |
SECURITIES (Tables)
SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
SECURITIES | |
Schedule of amortized costs, gross unrealized gains and losses, and estimated fair values | The following table summarizes the amortized cost, gross unrealized gains and losses, and estimated fair values of securities available-for-sale (“AFS”) and securities held-to-maturity at June 30, 2022 and December 31, 2021. ($ in thousands) June 30, 2022 Amortized Gross Gross Estimated Available-for-sale securities: U.S. Treasury $ 135,820 $ — $ 8,979 $ 126,841 Obligations of U.S. government agencies and sponsored entities 172,020 16 13,375 158,660 Tax-exempt and taxable obligations of states and municipal subdivisions 671,353 1,126 80,661 591,818 Mortgage-backed securities - residential 368,957 71 29,201 339,827 Mortgage-backed securities - commercial 251,865 118 17,176 234,807 Corporate obligations 38,326 83 1,115 37,294 Total available-for-sale $ 1,638,341 $ 1,413 $ 150,507 $ 1,489,247 Held-to-maturity: U.S. Treasury $ 109,527 $ — $ 3,403 $ 106,124 Obligations of U.S. government agencies and sponsored entities 33,127 — 489 32,638 Tax-exempt and taxable obligations of states and municipal subdivisions 146,958 162 11,576 135,544 Mortgage-backed securities - residential 163,453 — 10,139 153,314 Mortgage-backed securities - commercial 130,089 66 5,793 124,362 Corporate obligations 10,000 — 649 9,351 Total held-to-maturity $ 593,154 $ 228 $ 32,049 $ 561,333 ($ in thousands) December 31, 2021 Amortized Gross Gross Estimated Available-for-sale securities: U.S. Treasury $ 135,889 $ 83 $ 814 $ 135,158 Obligations of U.S. government agencies sponsored entities 182,877 1,238 1,094 183,021 Tax-exempt and taxable obligations of states and municipal subdivisions 698,861 12,452 2,811 708,502 Mortgage-backed securities - residential 410,269 4,123 3,425 410,967 Mortgage-backed securities - commercial 277,353 2,917 2,939 277,331 Corporate obligations 35,904 962 13 36,853 Total available-for-sale $ 1,741,153 $ 21,775 $ 11,096 $ 1,751,832 |
Schedule of credit quality debt securities held-to-maturity | The following table summarizes the amortized cost of debt securities held-to-maturity at June 30, 2022, aggregated by credit quality indicators. ($ in thousands) June 30, 2022 A2 $ 1,419 Aa1/Aa2/Aa3 19,711 Aaa 446,055 Not rated 125,969 Total $ 593,154 |
Schedule of amortized cost and fair value of debt securities by contractual maturity | ($ in thousands) June 30, 2022 Amortized Fair Available-for-sale: Due less than one year $ 27,963 $ 27,852 Due after one year through five years 269,064 257,549 Due after five years through ten years 387,471 350,647 Due greater than ten years 333,021 278,565 Mortgage-backed securities - residential 368,957 339,827 Mortgage-backed securities - commercial 251,865 234,807 Total $ 1,638,341 $ 1,489,247 Held-to-maturity: Due less than one year $ 20,798 $ 20,545 Due after one year through five years 109,904 106,351 Due after five years through ten years 35,543 33,601 Due greater than ten years 133,367 123,160 Mortgage-backed securities - residential 163,453 153,314 Mortgage-backed securities - commercial 130,089 124,362 Total $ 593,154 $ 561,333 |
Schedule of securities classified as available-for-sale and held-to-maturity with unrealized losses | The following table summarizes securities in an unrealized loss position for which an allowance for credit losses has not been recorded at June 30, 2022 and December 31, 2021. There were no held-to-maturity securities at December 31, 2021. The securities are aggregated by major security type and length of time in a continuous unrealized loss position: ($ in thousands) June 30, 2022 Losses < 12 Months Losses 12 Months or > Total Fair Gross Fair Gross Fair Gross Available-for-sale: U.S. Treasury $ 124,260 $ 8,794 $ 2,582 $ 185 $ 126,842 $ 8,979 Obligations of U.S. government agencies and sponsored entities 152,689 12,837 4,503 538 157,192 13,375 Tax-exempt and taxable obligations of state and municipal subdivisions 477,118 70,673 58,393 9,988 535,511 80,661 Mortgage-backed securities - residential 299,279 24,606 31,500 4,595 330,779 29,201 Mortgage-backed securities - commercial 182,312 13,954 30,647 3,222 212,959 17,176 Corporate obligations 27,684 1,111 27 4 27,711 1,115 Total $ 1,263,342 $ 131,975 $ 127,652 $ 18,532 $ 1,390,994 $ 150,507 Held-to-maturity: U.S. Treasury $ 106,124 $ 3,403 $ — $ — $ 106,124 $ 3,403 Obligations of U.S. government agencies and sponsored entities 32,638 489 — — 32,638 489 Tax-exempt and taxable obligations of state and municipal subdivisions 86,881 11,576 — — 86,881 11,576 Mortgage-backed securities - residential 153,314 10,139 — — 153,314 10,139 Mortgage-backed securities - commercial 119,649 5,793 — — 119,649 5,793 Corporate obligations 9,351 649 — — 9,351 649 Total $ 507,957 $ 32,049 $ — $ — $ 507,957 $ 32,049 ($ in thousands) December 31, 2021 Losses < 12 Months Losses 12 Months or > Total Fair Gross Fair Gross Fair Gross U.S. Treasury $ 130,098 $ 814 $ — $ — $ 130,098 $ 814 Obligations of U.S. government agencies and sponsored entities 121,402 933 5,254 161 126,656 1,094 Tax-exempt and taxable obligations of state and municipal subdivisions 249,430 2,692 3,692 119 253,122 2,811 Mortgage-backed securities - residential 284,183 3,228 8,912 197 293,095 3,425 Mortgage-backed securities - commercial 174,697 2,836 3,038 103 177,735 2,939 Corporate obligations 6,692 8 42 5 6,734 13 Total $ 966,502 $ 10,511 $ 20,938 $ 585 $ 987,440 $ 11,096 |
LOANS (Tables)
LOANS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Schedule of composition of loan portfolio | The following table shows the composition of the loan portfolio: ($ in thousands) June 30, 2022 December 31, 2021 Loans held for sale Mortgage loans held for sale $ 6,703 $ 7,678 Total LHFS $ 6,703 $ 7,678 Loans held for investment Commercial, financial and agriculture (1) $ 402,619 $ 397,516 Commercial real estate 1,810,204 1,683,698 Consumer real estate 871,051 838,654 Consumer installment 41,050 39,685 Total loans 3,124,924 2,959,553 Less allowance for credit losses (32,400) (30,742) Net LHFI $ 3,092,524 $ 2,928,811 ____________________________________________________________ (1) Loan balance includes $6.3 million and $41.1 million in Paycheck Protection Program (“PPP”) loans as of June 30, 2022 and December 31, 2021, respectively. |
Schedule of Company's loans that are past due and nonaccrual loans including PCD loans | The following tables presents the aging of the amortized cost basis in past due loans in addition to those loans classified as nonaccrual including purchase credit deteriorated (“PCD”) loans: ($ in thousands) June 30, 2022 Past Due Past Due Nonaccrual PCD Total Total Nonaccrual Commercial, financial and agriculture (1) $ 207 $ 527 $ 335 $ — $ 1,069 $ 402,619 $ 218 Commercial real estate 1,894 — 17,733 1,402 21,029 1,810,204 1,487 Consumer real estate 1,437 — 2,928 1,276 5,641 871,051 90 Consumer installment 194 — 4 — 198 41,050 — Total $ 3,732 $ 527 $ 21,000 $ 2,678 $ 27,937 $ 3,124,924 $ 1,795 ___________________________________________________________ (1) Total loan balance includes $6.3 million in PPP loans as of June 30, 2022. December 31, 2021 ($ in thousands) Past Due Past Due 90 Nonaccrual PCD Total Total Nonaccrual Commercial, financial and agriculture (1) $ 246 $ — $ 190 $ — $ 436 $ 397,516 $ — Commercial real estate 453 — 19,445 2,082 21,980 1,683,698 1,661 Consumer real estate 2,140 45 3,776 2,512 8,473 838,654 1,488 Consumer installment 121 — 7 1 129 39,685 — Total $ 2,960 $ 45 $ 23,418 $ 4,595 $ 31,018 $ 2,959,553 $ 3,149 ___________________________________________________________ (1) Total loan balance includes $41.1 million in PPP loans as of December 31, 2021. |
Schedule of troubled debt restructurings | The following table presents LHFI by class modified as TDRs that occurred during the three and six months ended June 30, 2022 and 2021. ($ in thousands, except for number of loans) Three Months Ended June 30, 2022 Number of Outstanding Outstanding Commercial, financial and agriculture 1 $ 15 $ 15 Total 1 $ 15 $ 15 2021 Commercial real estate 2 $ 237 $ 237 Consumer real estate 1 $ 54 $ 44 Total 3 $ 291 $ 281 The TDRs presented above increased the ACL $0 and $21 thousand and resulted in no charge-offs for the three months period ended June 30, 2022 and 2021, respectively. ($ in thousands, except for number of loans) Six Months Ended June 30, 2022 Number of Outstanding Outstanding Commercial, financial and agriculture 1 $ 15 $ 15 Total 1 $ 15 $ 15 2021 Commercial real estate 2 $ 237 $ 237 Consumer real estate 1 $ 54 $ 44 Total 3 $ 291 $ 281 The TDRs presented above increased the ACL $0 and $21 thousand and resulted in no charge-offs for the six months period ended June 30, 2022 and 2021, respectively. The following table presents loans by class modified as TDRs for which there was a payment default within twelve months following the modification ($ in thousands, except for number of loans). Troubled Debt Restructurings That Subsequently Defaulted: Six Months Ended June 30, 2022 2021 Number of Recorded Number of Recorded Commercial real estate 3 $ 4,562 3 $ 1,027 Consumer real estate 3 133 1 44 Total 6 $ 4,695 4 $ 1,071 The modifications described above included one of the following or a combination of the following: maturity date extensions, interest only payments, amortizations were extended beyond what would be available on similar type loans, and payment waiver. No interest rate concessions were given on these loans nor were any of these loans written down. A loan is considered to be in a payment default once it is 30 days contractually past due under the modified terms. The TDRs presented above increased the ACL $1.5 million and $238 thousand and resulted in no charge-offs for the six months period ended June 30, 2022 and 2021, respectively. The following tables represents the Company’s TDRs at June 30, 2022 and December 31, 2021: June 30, 2022 Current Past Due Past Due 90 Nonaccrual Total ($ in thousands) Commercial, financial and agriculture $ 15 $ — $ — $ 65 $ 79 Commercial real estate 3,142 — — 15,849 18,991 Consumer real estate 1,157 — — 902 2,059 Consumer installment 15 — — — 15 Total $ 4,329 $ — $ — $ 16,816 $ 21,144 Allowance for credit losses $ 53 $ — $ — $ 3,778 $ 3,831 December 31, 2021 Current Past Due Past Due 90 Nonaccrual Total ($ in thousands) Commercial, financial and agriculture $ 63 $ — $ — $ 107 $ 170 Commercial real estate 3,367 — — 16,858 20,225 Consumer real estate 1,772 — — 1,973 3,745 Consumer installment 18 — — — 18 Total $ 5,220 $ — $ — $ 18,938 $ 24,158 Allowance for credit losses $ 90 $ — $ — $ 4,217 $ 4,307 |
Schedule of amortized cost basis of loans by credit quality indicator and class of loans based on the most recent analysis performed and risk category of loans by class of loans | The tables below present the amortized cost basis of loans by credit quality indicator and class of loans based on the most recent analysis performed at June 30, 2022 and December 31, 2021. Revolving loans converted to term as of the six months ended June 30, 2022 and December 31, 2021 were not material to the total loan portfolio. As of June 30, 2022 Term Loans Amortized Cost Basis by Origination Year Revolving Total ($ in thousands) 2022 2021 2020 2019 2018 Prior Commercial, financial and agriculture: Risk Rating Pass $ 78,092 $ 118,432 $ 50,598 $ 46,425 $ 46,582 $ 60,811 $ 66 $ 401,006 Special mention — — 218 336 — 416 — 970 Substandard 35 40 — 47 50 471 — 643 Doubtful — — — — — — — — Total commercial, financial and agriculture $ 78,126 $ 118,472 $ 50,816 $ 46,808 $ 46,632 $ 61,698 $ 66 $ 402,619 Commercial real estate: Risk Rating Pass $ 288,699 $ 417,922 $ 283,843 $ 185,986 $ 149,012 $ 396,464 $ — $ 1,721,925 Special mention — 1,309 2,269 1,725 6,911 13,889 — 26,104 Substandard — 4,973 2,761 2,284 16,362 35,121 — 61,501 Doubtful — — — — — 675 — 675 Total commercial real estate $ 288,699 $ 424,204 $ 288,874 $ 189,995 $ 172,284 $ 446,149 $ — $ 1,810,204 Consumer real estate: Risk Rating Pass $ 139,239 $ 224,599 $ 135,559 $ 56,347 $ 55,459 $ 144,043 $ 99,869 $ 855,114 Special mention — — — 201 26 3,028 — 3,254 Substandard 53 424 420 653 2,569 7,145 1,418 12,683 Doubtful — — — — — — — — Total consumer real estate $ 139,292 $ 225,023 $ 135,978 $ 57,201 $ 58,053 $ 154,215 $ 101,287 $ 871,051 Consumer installment: Risk Rating Pass $ 10,954 $ 13,170 $ 6,613 $ 2,895 $ 998 $ 1,853 $ 4,502 $ 40,986 Special mention — — — — — — — — Substandard 22 4 23 2 3 9 — 63 Doubtful — — — — — — — — Total consumer installment $ 10,976 $ 13,175 $ 6,636 $ 2,897 $ 1,001 $ 1,863 $ 4,502 $ 41,050 Total Pass $ 516,984 $ 774,123 $ 476,613 $ 291,654 $ 252,050 $ 603,170 $ 104,438 $ 3,019,031 Special mention — 1,309 2,488 2,261 6,937 17,333 — 30,328 Substandard 109 5,441 3,204 2,986 18,984 42,746 1,418 74,890 Doubtful — — — — — 675 — 675 Total $ 517,093 $ 780,874 $ 482,304 $ 296,901 $ 277,971 $ 663,924 $ 105,856 $ 3,124,924 As of December 31, 2021 Term Loans Amortized Cost Basis by Origination Year Revolving Total ($ in thousands) 2021 2020 2019 2018 2017 Prior Commercial, financial and: agriculture Risk Rating Pass $ 152,798 $ 60,106 $ 52,802 $ 47,988 $ 22,083 $ 43,773 $ 178 $ 379,728 Special mention — 255 749 90 481 29 — 1,604 Substandard — — 1,398 6,184 360 8,242 — 16,184 Doubtful — — — — — — — — Total commercial, financial and agriculture $ 152,798 $ 60,361 $ 54,949 $ 54,262 $ 22,924 $ 52,044 $ 178 $ 397,516 Commercial real estate: Risk Rating Pass $ 402,284 $ 313,288 $ 207,879 $ 177,943 $ 134,234 $ 332,588 $ — $ 1,568,216 Special mention 1,326 2,259 1,782 15,076 2,779 15,519 — 38,741 Substandard 3,904 3,189 1,931 17,147 18,814 31,756 — 76,741 Doubtful — — — — — — — — Total commercial real estate $ 407,514 $ 318,736 $ 211,592 $ 210,166 $ 155,827 $ 379,863 $ — $ 1,683,698 Consumer real estate: Risk Rating Pass $ 243,340 $ 164,359 $ 70,465 $ 66,940 $ 51,988 $ 121,238 $ 98,444 $ 816,774 Special mention — — 331 26 1,746 1,949 — 4,052 Substandard 444 532 1,280 3,410 1,288 9,241 1,633 17,828 Doubtful — — — — — — — — Total consumer real estate $ 243,784 $ 164,891 $ 72,076 $ 70,376 $ 55,022 $ 132,428 $ 100,077 $ 838,654 Consumer installment: Risk Rating Pass $ 17,980 $ 9,245 $ 4,222 $ 1,645 $ 1,088 $ 1,758 $ 3,697 $ 39,635 Special mention — — — — 1 — — 1 Substandard — 26 3 5 8 7 — 49 Doubtful — — — — — — — — Total consumer installment $ 17,980 $ 9,271 $ 4,225 $ 1,650 $ 1,097 $ 1,765 $ 3,697 $ 39,685 Total Pass $ 816,402 $ 546,998 $ 335,368 $ 294,516 $ 209,393 $ 499,357 $ 102,319 $ 2,804,353 Special mention 1,326 2,514 2,862 15,192 5,007 17,497 — 44,398 Substandard 4,348 3,747 4,612 26,746 20,470 49,246 1,633 110,802 Doubtful — — — — — — — — Total $ 822,076 $ 553,259 $ 342,842 $ 336,454 $ 234,870 $ 566,100 $ 103,952 $ 2,959,553 |
Schedule of allowance for credit losses | The following table presents the activity in the allowance for credit losses by portfolio segment for the three and six months ended June 30, 2022 and 2021: ($ in thousands) Three Months Ended June 30, 2022 Commercial, Commercial Consumer Consumer Total Allowance for credit losses: Beginning balance $ 4,874 $ 17,773 $ 8,492 $ 481 $ 31,620 Provision for credit losses (313) 629 62 72 450 Loans charged-off (94) (24) (140) (168) (426) Recoveries 44 290 338 84 756 Total ending allowance balance $ 4,511 $ 18,668 $ 8,752 $ 469 $ 32,400 ($ in thousands) Six Months Ended June 30, 2022 Commercial, Commercial Consumer Consumer Total Allowance for credit losses: Beginning balance $ 4,873 $ 17,552 $ 7,889 $ 428 $ 30,742 Provision for credit losses (313) 629 62 72 450 Loans charged-off (146) (27) (147) (337) (657) Recoveries 97 514 948 306 1,865 Total ending allowance balance $ 4,511 $ 18,668 $ 8,752 $ 469 $ 32,400 ($ in thousands) Three Months Ended June 30, 2021 Commercial, Commercial Consumer Consumer Total Allowance for credit losses: Beginning balance $ 4,158 $ 17,578 $ 10,280 $ 647 $ 32,663 Provision for credit losses — — — — — Loans charged-off (490) (166) (124) (108) (888) Recoveries 242 161 183 96 682 Total ending allowance balance $ 3,910 $ 17,573 $ 10,339 $ 635 $ 32,457 ($ in thousands) Six Months Ended June 30, 2021 Commercial, Commercial Consumer Consumer Total Allowance for credit losses: Beginning balance $ 6,214 $ 24,319 $ 4,736 $ 551 $ 35,820 Impact of ASC 326 adoption on non-PCD loans (1,319) (4,607) 5,257 (49) (718) Impact of ASC 326 adoption on PCD loans 166 575 372 2 1,115 Provision for credit losses — — — — — Loans charged-off (1,476) (3,007) (263) (265) (5,011) Recoveries 325 293 237 396 1,251 Total ending allowance balance $ 3,910 $ 17,573 $ 10,339 $ 635 $ 32,457 The Company recorded a $450 thousand provision for credit losses for the six months ended June 30, 2022, compared to no provision for the same period in 2021. The $450 thousand provision for credit losses is primarily attributed to an increase in total loans held for investment. The Company determined that no provision adjustment was necessary at June 30, 2021 due to the improved macroeconomic outlook. The following table provides the ending balance in the Company’s LHFI and the ACL, broken down by portfolio segment as of June 30, 2022 and December 31, 2021 ($ in thousands). June 30, 2022 Commercial, Commercial Consumer Consumer Total LHFI Individually evaluated $ 218 $ 1,487 $ 312 $ — $ 2,017 Collectively evaluated 402,401 1,808,717 870,739 41,050 3,122,907 Total $ 402,619 $ 1,810,204 $ 871,051 $ 41,050 $ 3,124,924 Allowance for Credit Losses Individually evaluated $ — $ — $ 6 $ — $ 6 Collectively evaluated 4,511 18,668 8,746 469 32,394 Total $ 4,511 $ 18,668 $ 8,752 $ 469 $ 32,400 December 31, 2021 Commercial, Commercial Consumer Consumer Total LHFI Individually evaluated $ — $ 1,712 $ 1,858 $ — $ 3,570 Collectively evaluated 397,516 1,681,986 836,796 39,685 2,955,983 Total $ 397,516 $ 1,683,698 $ 838,654 $ 39,685 $ 2,959,553 Allowance for Credit Losses Individually evaluated $ — $ 4 $ 2 $ — $ 6 Collectively evaluated 4,873 17,548 7,887 428 30,736 Total $ 4,873 $ 17,552 $ 7,889 $ 428 $ 30,742 |
Financing Receivable, Allowance for Credit Loss | The following table presents the amortized cost basis of collateral dependent individually evaluated loans by class of loans as of June 30, 2022 and December 31, 2021: June 30, 2022 ($ in thousands) Real Property Equipment Total Commercial, financial and agriculture $ — $ 218 $ 218 Commercial real estate 1,487 — 1,487 Consumer real estate 312 — 312 Total $ 1,799 $ 218 $ 2,017 December 31, 2021 ($ in thousands) Real Property Total Commercial real estate $ 1,712 $ 1,712 Consumer real estate 1,858 1,858 Total $ 3,570 $ 3,570 |
SUMMARY OF ORGANIZATION - Addit
SUMMARY OF ORGANIZATION - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||||
Jul. 27, 2022 | May 25, 2022 | Feb. 25, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
SUBSEQUENT EVENTS | |||||||||||
Loans, excluding Loans held for sale | $ 3,093,000 | ||||||||||
Deposits | $ 5,306,197 | 5,306,197 | $ 5,226,784 | ||||||||
Stockholders' equity | 560,452 | $ 590,440 | $ 660,052 | $ 643,949 | 560,452 | $ 660,052 | 676,172 | $ 644,815 | |||
Net income | 15,753 | $ 16,829 | $ 15,600 | $ 16,644 | 32,582 | $ 32,244 | |||||
Total assets | $ 6,037,425 | $ 6,037,425 | $ 6,077,414 | ||||||||
Dividends on common stock, per share | $ 0.18 | $ 0.17 | |||||||||
Dividends declared | $ 0.18 | $ 0.17 | $ 0.14 | $ 0.13 | |||||||
Subsequent Event | |||||||||||
SUBSEQUENT EVENTS | |||||||||||
Dividends declared | $ 0.19 |
BUSINESS COMBINATIONS - Narrati
BUSINESS COMBINATIONS - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 03, 2021 USD ($) item | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | |
BUSINESS COMBINATIONS | |||||
Bargain purchase gain | $ 1,600 | ||||
Provision for credit loss | $ 450 | $ 0 | $ 450 | $ 0 | |
Cadence Bank, N.A | |||||
BUSINESS COMBINATIONS | |||||
Number of branches | item | 7 | ||||
Business combination, deposits | $ 410,171 | ||||
Business combination, loans | 40,262 | ||||
Business combination, deposit premium | 1,000 | ||||
Bargain purchase gain | 1,581 | ||||
Finite-lived intangible assets acquired | 2,900 | ||||
Provision for credit loss | $ 370 | ||||
Business combination, acquisition related costs | $ 232 | $ 444 | |||
Cadence Bank, N.A | Core Deposits | |||||
BUSINESS COMBINATIONS | |||||
Acquired finite-lived intangible assets, weighted average useful life | 10 years |
BUSINESS COMBINATIONS - Summary
BUSINESS COMBINATIONS - Summary of Acquired Identifiable Assets and Liabilities (Details) $ in Thousands | Dec. 03, 2021 USD ($) |
Liabilities and equity: | |
Bargain purchase gain | $ (1,600) |
Cadence Bank, N.A | |
Purchase price: | |
Cash | 1,000 |
Total purchase price | 1,000 |
Identifiable assets: | |
Cash | 359,916 |
Loans | 40,262 |
Core deposit intangible | 2,890 |
Personal and real property | 9,675 |
Other assets | 135 |
Total assets | 412,878 |
Liabilities and equity: | |
Deposits | 410,171 |
Other liabilities | 126 |
Total liabilities | 410,297 |
Net assets acquired | 2,581 |
Bargain purchase gain | $ (1,581) |
BUSINESS COMBINATIONS - Busines
BUSINESS COMBINATIONS - Business Acquisition, Pro Forma Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
BUSINESS COMBINATIONS | ||
Total revenue | $ 100,561 | $ 95,574 |
Income before income taxes | 41,996 | 40,857 |
Net interest income | ||
BUSINESS COMBINATIONS | ||
Total revenue | 80,740 | 77,279 |
Non-interest income | ||
BUSINESS COMBINATIONS | ||
Total revenue | $ 19,821 | $ 18,295 |
EARNINGS APPLICABLE TO COMMON_3
EARNINGS APPLICABLE TO COMMON SHAREHOLDERS - Earnings Available to Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Net Income (Loss) Available to Common Stockholders, Basic | $ 15,753 | $ 15,600 | $ 32,582 | $ 32,244 |
Net Income (Loss) Available to Common Stockholders, Diluted | $ 15,753 | $ 15,600 | $ 32,582 | $ 32,244 |
Effect of dilutive shares: | ||||
Weighted average number of shares outstanding, basic earnings per share | 20,507,451 | 21,018,772 | 20,602,698 | 21,013,930 |
Restricted stock grants (in shares) | 108,477 | 188,288 | 122,847 | 182,147 |
Weighted Average Number of Shares Outstanding, Diluted | 20,615,928 | 21,207,060 | 20,725,545 | 21,196,077 |
Basic earnings per share (in dollars per share) | $ 0.77 | $ 0.74 | $ 1.58 | $ 1.53 |
Diluted earnings per share (in dollars per share) | $ 0.76 | $ 0.74 | $ 1.57 | $ 1.52 |
EARNINGS APPLICABLE TO COMMON_4
EARNINGS APPLICABLE TO COMMON SHAREHOLDERS - Narrative (Details) - shares | 3 Months Ended | |||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | |
Earnings Per Share [Abstract] | ||||
Shares of restricted stock granted | 47,827 | 82,123 | 3,000 | 84,578 |
FINANCIAL INSTRUMENTS WITH OF_3
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK - Schedule of Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Fixed Rate | ||
Financial instruments with off-balance-sheet risk | ||
Commitments to make loans | $ 102,763 | $ 80,760 |
Unused lines of credit | 270,342 | 213,332 |
Standby letters of credit | 4,045 | 2,586 |
Variable Rate | ||
Financial instruments with off-balance-sheet risk | ||
Commitments to make loans | 5,582 | 23,946 |
Unused lines of credit | 314,136 | 309,791 |
Standby letters of credit | $ 9,256 | $ 9,737 |
FINANCIAL INSTRUMENTS WITH OF_4
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK - Additional Information (Details) - Off balance sheet risk | 6 Months Ended |
Jun. 30, 2022 | |
Minimum | |
Concentration Risk [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 1% |
Debt Instrument, Term | 1 year |
Maximum | |
Concentration Risk [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 18% |
Debt Instrument, Term | 30 years |
FINANCIAL INSTRUMENTS WITH OF_5
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK - Changes in the ACL on OBSC Exposures (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||||
Balance at beginning of period | $ 1,070 | $ 718 | $ 1,070 | $ 0 |
Credit loss expense related to OBSC exposures | 150 | 0 | 150 | 0 |
Balance at end of period | 1,220 | 718 | 1,220 | 718 |
Cumulative Effect, Period of Adoption, Adjustment | ||||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||||
Adoption of ASU 326 | $ 0 | $ 0 | $ 0 | $ 718 |
FAIR VALUE DISCLOSURES AND RE_3
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS - Narrative (Details) | Jun. 30, 2022 |
Measurement Input, Discount Rate [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impaired loans and other real estate owned | 10 |
FAIR VALUE DISCLOSURES AND RE_4
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS - Fair Values of Off-Balance Sheet Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Assets: | ||
Cash and cash equivalents | $ 356,771 | $ 919,713 |
Securities available-for-sale: | 1,489,247 | 1,751,832 |
Amortized Cost | 593,154 | 0 |
Securities held-to-maturity | 561,333 | 0 |
Loans, net | 3,092,524 | 2,928,811 |
Accrued interest receivable | 24,543 | 23,256 |
Liabilities: | ||
Noninterest-bearing deposits | 822,841 | 756,118 |
Interest-bearing deposits | 4,483,356 | 4,470,666 |
Subordinated debentures | 144,876 | 144,726 |
Accrued interest payable | 1,607 | 1,711 |
U.S. Treasury | ||
Assets: | ||
Securities available-for-sale: | 126,841 | 135,158 |
Obligations of U.S. Government agencies and sponsored entities | ||
Assets: | ||
Securities available-for-sale: | 158,660 | 183,021 |
Municipal securities | ||
Assets: | ||
Securities available-for-sale: | 591,818 | 708,502 |
Mortgage-backed securities | ||
Assets: | ||
Securities available-for-sale: | 574,634 | 688,298 |
Corporate obligations | ||
Assets: | ||
Securities available-for-sale: | 37,294 | 36,853 |
Quoted Prices (Level 1) | ||
Assets: | ||
Cash and cash equivalents | 356,771 | 919,713 |
Securities held-to-maturity | 0 | |
Loans, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Liabilities: | ||
Noninterest-bearing deposits | 0 | 0 |
Interest-bearing deposits | 0 | 0 |
Subordinated debentures | 0 | 0 |
Accrued interest payable | 0 | 0 |
Quoted Prices (Level 1) | U.S. Treasury | ||
Assets: | ||
Securities available-for-sale: | 126,841 | 135,158 |
Quoted Prices (Level 1) | Obligations of U.S. Government agencies and sponsored entities | ||
Assets: | ||
Securities available-for-sale: | 0 | 0 |
Quoted Prices (Level 1) | Municipal securities | ||
Assets: | ||
Securities available-for-sale: | 0 | 0 |
Quoted Prices (Level 1) | Mortgage-backed securities | ||
Assets: | ||
Securities available-for-sale: | 0 | 0 |
Quoted Prices (Level 1) | Corporate obligations | ||
Assets: | ||
Securities available-for-sale: | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities held-to-maturity | 561,333 | |
Loans, net | 0 | 0 |
Accrued interest receivable | 9,211 | 6,838 |
Liabilities: | ||
Noninterest-bearing deposits | 822,841 | 756,118 |
Interest-bearing deposits | 4,331,370 | 4,431,771 |
Subordinated debentures | 0 | 0 |
Accrued interest payable | 1,607 | 1,711 |
Significant Other Observable Inputs (Level 2) | U.S. Treasury | ||
Assets: | ||
Securities available-for-sale: | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Obligations of U.S. Government agencies and sponsored entities | ||
Assets: | ||
Securities available-for-sale: | 158,660 | 183,021 |
Significant Other Observable Inputs (Level 2) | Municipal securities | ||
Assets: | ||
Securities available-for-sale: | 573,561 | 688,379 |
Significant Other Observable Inputs (Level 2) | Mortgage-backed securities | ||
Assets: | ||
Securities available-for-sale: | 574,634 | 688,298 |
Significant Other Observable Inputs (Level 2) | Corporate obligations | ||
Assets: | ||
Securities available-for-sale: | 37,262 | 36,810 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities held-to-maturity | 0 | |
Loans, net | 3,115,862 | 2,956,297 |
Accrued interest receivable | 15,332 | 16,418 |
Liabilities: | ||
Noninterest-bearing deposits | 0 | 0 |
Interest-bearing deposits | 0 | 0 |
Subordinated debentures | 145,055 | 156,952 |
Accrued interest payable | 0 | 0 |
Significant Unobservable Inputs (Level 3) | U.S. Treasury | ||
Assets: | ||
Securities available-for-sale: | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Obligations of U.S. Government agencies and sponsored entities | ||
Assets: | ||
Securities available-for-sale: | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Municipal securities | ||
Assets: | ||
Securities available-for-sale: | 18,257 | 20,123 |
Significant Unobservable Inputs (Level 3) | Mortgage-backed securities | ||
Assets: | ||
Securities available-for-sale: | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Corporate obligations | ||
Assets: | ||
Securities available-for-sale: | 32 | 43 |
Estimated Fair Value | ||
Assets: | ||
Cash and cash equivalents | 356,771 | 919,713 |
Securities held-to-maturity | 561,333 | |
Loans, net | 3,115,862 | 2,956,297 |
Accrued interest receivable | 24,543 | 23,256 |
Liabilities: | ||
Noninterest-bearing deposits | 822,841 | 756,118 |
Interest-bearing deposits | 4,331,370 | 4,431,771 |
Subordinated debentures | 145,055 | 156,952 |
Accrued interest payable | 1,607 | 1,711 |
Estimated Fair Value | U.S. Treasury | ||
Assets: | ||
Securities available-for-sale: | 126,841 | 135,158 |
Estimated Fair Value | Obligations of U.S. Government agencies and sponsored entities | ||
Assets: | ||
Securities available-for-sale: | 158,660 | 183,021 |
Estimated Fair Value | Municipal securities | ||
Assets: | ||
Securities available-for-sale: | 591,818 | 708,502 |
Estimated Fair Value | Mortgage-backed securities | ||
Assets: | ||
Securities available-for-sale: | 574,634 | 688,298 |
Estimated Fair Value | Corporate obligations | ||
Assets: | ||
Securities available-for-sale: | $ 37,294 | $ 36,853 |
FAIR VALUE DISCLOSURES AND RE_5
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS - Fair Value of Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale: | $ 1,489,247 | $ 1,751,832 |
Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale: | 1,489,247 | 1,751,832 |
U.S. Treasury | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale: | 126,841 | 135,158 |
U.S. Treasury | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale: | 126,841 | 135,158 |
Obligations of U.S. Government agencies and sponsored entities | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale: | 158,660 | 183,021 |
Obligations of U.S. Government agencies and sponsored entities | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale: | 158,660 | 183,021 |
Municipal securities | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale: | 591,818 | 708,502 |
Municipal securities | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale: | 591,818 | 708,502 |
Mortgage-backed securities | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale: | 574,634 | 688,298 |
Mortgage-backed securities | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale: | 574,634 | 688,298 |
Corporate obligations | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale: | 37,294 | 36,853 |
Quoted Prices (Level 1) | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale: | 126,841 | 135,158 |
Quoted Prices (Level 1) | U.S. Treasury | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale: | 126,841 | 135,158 |
Quoted Prices (Level 1) | U.S. Treasury | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale: | 126,841 | 135,158 |
Quoted Prices (Level 1) | Obligations of U.S. Government agencies and sponsored entities | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale: | 0 | 0 |
Quoted Prices (Level 1) | Obligations of U.S. Government agencies and sponsored entities | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale: | 0 | 0 |
Quoted Prices (Level 1) | Municipal securities | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale: | 0 | 0 |
Quoted Prices (Level 1) | Municipal securities | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale: | 0 | 0 |
Quoted Prices (Level 1) | Mortgage-backed securities | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale: | 0 | 0 |
Quoted Prices (Level 1) | Mortgage-backed securities | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale: | 0 | 0 |
Quoted Prices (Level 1) | Corporate obligations | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale: | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale: | 1,344,117 | 1,596,508 |
Significant Other Observable Inputs (Level 2) | U.S. Treasury | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale: | 0 | 0 |
Significant Other Observable Inputs (Level 2) | U.S. Treasury | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale: | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Obligations of U.S. Government agencies and sponsored entities | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale: | 158,660 | 183,021 |
Significant Other Observable Inputs (Level 2) | Obligations of U.S. Government agencies and sponsored entities | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale: | 158,660 | 183,021 |
Significant Other Observable Inputs (Level 2) | Municipal securities | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale: | 573,561 | 688,379 |
Significant Other Observable Inputs (Level 2) | Municipal securities | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale: | 573,561 | 688,379 |
Significant Other Observable Inputs (Level 2) | Mortgage-backed securities | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale: | 574,634 | 688,298 |
Significant Other Observable Inputs (Level 2) | Mortgage-backed securities | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale: | 574,634 | 688,298 |
Significant Other Observable Inputs (Level 2) | Corporate obligations | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale: | 37,262 | 36,810 |
Significant Unobservable Inputs (Level 3) | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale: | 18,289 | 20,166 |
Significant Unobservable Inputs (Level 3) | U.S. Treasury | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale: | 0 | 0 |
Significant Unobservable Inputs (Level 3) | U.S. Treasury | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale: | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Obligations of U.S. Government agencies and sponsored entities | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale: | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Obligations of U.S. Government agencies and sponsored entities | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale: | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Municipal securities | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale: | 18,257 | 20,123 |
Significant Unobservable Inputs (Level 3) | Municipal securities | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale: | 18,257 | 20,123 |
Significant Unobservable Inputs (Level 3) | Mortgage-backed securities | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale: | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Mortgage-backed securities | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale: | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Corporate obligations | Recurring basis | ||
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items] | ||
Securities available-for-sale: | $ 32 | $ 43 |
FAIR VALUE DISCLOSURES AND RE_6
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS - Reconciliation of Activity for Assets Measured at Fair Value based on Significant Unobservable (Non-market) Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Paydowns | $ (11) | $ (55) |
Purchases | 0 | 4,189 |
Banks, Trust and Insurance, Equities [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Balance, January 1 | 43 | 235 |
Unrealized gain included in comprehensive income | 0 | 38 |
Balance at March 31 | 32 | 218 |
Municipal securities | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Balance, January 1 | 20,123 | 20,126 |
Unrealized gain included in comprehensive income | (1,630) | (26) |
Maturities, calls and paydowns | (236) | (4,185) |
Balance at March 31 | $ 18,257 | $ 20,104 |
FAIR VALUE DISCLOSURES AND RE_7
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS - Quantitative Information About Recurring Level 3 Fair Value Measurements (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Trust Preferred Securities | |||
Quantitative Information About Recurring Fair Value Measurements [Line Items] | |||
Fair Value | $ 32 | $ 43 | |
Range of Inputs, Minimum | 4.25% | 2.35% | |
Range of Inputs, Maximum | 4.72% | 2.47% | |
Municipal securities | |||
Quantitative Information About Recurring Fair Value Measurements [Line Items] | |||
Fair Value | $ 18,257 | $ 20,123 | |
Range of Inputs, Minimum | 2% | 0.50% | |
Range of Inputs, Maximum | 3.90% | 1.90% |
FAIR VALUE DISCLOSURES AND RE_8
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS - Fair Value of Assets Measured on Nonrecurring Basis (Details) - Fair Value, Nonrecurring - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | $ 2,011 | $ 3,564 |
Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 1,985 | 2,565 |
Quoted Prices (Level 1) | Collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 0 | 0 |
Quoted Prices (Level 1) | Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | 2,011 | 3,564 |
Significant Unobservable Inputs (Level 3) | Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a nonrecurring basis | $ 1,985 | $ 2,565 |
SECURITIES - Summary of Amortiz
SECURITIES - Summary of Amortized Cost and Fair Value of Available-For-Sale Securities and Held-To-Maturity Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Available-for-sale securities: | ||
Amortized Cost | $ 1,638,341 | $ 1,741,153 |
Gross Unrealized Gains | 1,413 | 21,775 |
Gross Unrealized Losses | 150,507 | 11,096 |
Securities available-for-sale: | 1,489,247 | 1,751,832 |
Held-to-maturity: | ||
Securities held to maturity, net of allowance for credit losses of $0 (fair value: $561,333 - 2022; $0 - 2021) | 593,154 | 0 |
Gross Unrealized Gains | 228 | |
Gross Unrealized Losses | 32,049 | |
Estimated Fair Value | 561,333 | 0 |
U.S. Treasury | ||
Available-for-sale securities: | ||
Amortized Cost | 135,820 | 135,889 |
Gross Unrealized Gains | 0 | 83 |
Gross Unrealized Losses | 8,979 | 814 |
Securities available-for-sale: | 126,841 | 135,158 |
Held-to-maturity: | ||
Securities held to maturity, net of allowance for credit losses of $0 (fair value: $561,333 - 2022; $0 - 2021) | 109,527 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 3,403 | |
Estimated Fair Value | 106,124 | |
Obligations of U.S. government agencies and sponsored entities | ||
Available-for-sale securities: | ||
Amortized Cost | 172,020 | 182,877 |
Gross Unrealized Gains | 16 | 1,238 |
Gross Unrealized Losses | 13,375 | 1,094 |
Securities available-for-sale: | 158,660 | 183,021 |
Held-to-maturity: | ||
Securities held to maturity, net of allowance for credit losses of $0 (fair value: $561,333 - 2022; $0 - 2021) | 33,127 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 489 | |
Estimated Fair Value | 32,638 | |
Tax-exempt and taxable obligations of states and municipal subdivisions | ||
Available-for-sale securities: | ||
Amortized Cost | 671,353 | 698,861 |
Gross Unrealized Gains | 1,126 | 12,452 |
Gross Unrealized Losses | 80,661 | 2,811 |
Securities available-for-sale: | 591,818 | 708,502 |
Held-to-maturity: | ||
Securities held to maturity, net of allowance for credit losses of $0 (fair value: $561,333 - 2022; $0 - 2021) | 146,958 | |
Gross Unrealized Gains | 162 | |
Gross Unrealized Losses | 11,576 | |
Estimated Fair Value | 135,544 | |
Mortgage-backed securities - residential | ||
Available-for-sale securities: | ||
Amortized Cost | 368,957 | 410,269 |
Gross Unrealized Gains | 71 | 4,123 |
Gross Unrealized Losses | 29,201 | 3,425 |
Securities available-for-sale: | 339,827 | 410,967 |
Held-to-maturity: | ||
Securities held to maturity, net of allowance for credit losses of $0 (fair value: $561,333 - 2022; $0 - 2021) | 163,453 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 10,139 | |
Estimated Fair Value | 153,314 | |
Mortgage-backed securities - commercial | ||
Available-for-sale securities: | ||
Amortized Cost | 251,865 | 277,353 |
Gross Unrealized Gains | 118 | 2,917 |
Gross Unrealized Losses | 17,176 | 2,939 |
Securities available-for-sale: | 234,807 | 277,331 |
Held-to-maturity: | ||
Securities held to maturity, net of allowance for credit losses of $0 (fair value: $561,333 - 2022; $0 - 2021) | 130,089 | |
Gross Unrealized Gains | 66 | |
Gross Unrealized Losses | 5,793 | |
Estimated Fair Value | 124,362 | |
Corporate obligations | ||
Available-for-sale securities: | ||
Amortized Cost | 38,326 | 35,904 |
Gross Unrealized Gains | 83 | 962 |
Gross Unrealized Losses | 1,115 | 13 |
Securities available-for-sale: | 37,294 | $ 36,853 |
Held-to-maturity: | ||
Securities held to maturity, net of allowance for credit losses of $0 (fair value: $561,333 - 2022; $0 - 2021) | 10,000 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 649 | |
Estimated Fair Value | $ 9,351 |
SECURITIES - Narrative (Details
SECURITIES - Narrative (Details) | 3 Months Ended | ||
Jun. 30, 2022 USD ($) security | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) security | |
Debt and Equity Securities, FV-NI [Line Items] | |||
Accrued interest receivable | $ 7,200,000 | $ 6,800,000 | |
Held to maturity, credit loss exposure | 391,000 | ||
Amount of reserve recorded | 0 | ||
Accrued interest receivable of held-to-maturity securities | 2,000,000 | 0 | |
Held-to-maturity, excluding accrued interest, nonaccrual | 0 | ||
Carrying value of securities pledged to public deposits | $ 1,075,000,000 | $ 889,500,000 | |
Number of securities in the portfolio that were in an unrealized loss position | security | 1,237 | 304 | |
Provision for credit losses | $ 0 | $ 0 | |
AFS Securities | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Credit loss recognized | 0 | $ 0 | |
Financial Asset, Not Past Due | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Current Loans | 0 | $ 0 | |
Securities held to maturity past due 30 days | $ 0 |
SECURITIES - Credit Quality Ind
SECURITIES - Credit Quality Indicators (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | $ 593,154 | $ 0 |
A2 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | 1,419 | |
Aa1/Aa2/Aa3 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | 19,711 | |
Aaa | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | 446,055 | |
Not rated | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | $ 125,969 |
SECURITIES - Amortized Cost and
SECURITIES - Amortized Cost and Fair Value of Debt Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Available-for-Sale, Amortized Cost | ||
Due less than one year | $ 27,963 | |
Due after one year through five years | 269,064 | |
Due after five years through ten years | 387,471 | |
Due greater than ten years | 333,021 | |
Mortgage-backed securities - residential | 368,957 | |
Mortgage-backed securities - commercial | 251,865 | |
Total | 1,638,341 | |
Available-for-Sale, Fair Value | ||
Due less than one year | 27,852 | |
Due after one year through five years | 257,549 | |
Due after five years through ten years | 350,647 | |
Due greater than ten years | 278,565 | |
Mortgage-backed securities - residential | 339,827 | |
Mortgage-backed securities - commercial | 234,807 | |
Total | 1,489,247 | |
Held-to-maturity, Amortized Cost | ||
Due less than one year | 20,798 | |
Due after one year through five years | 109,904 | |
Due after five years through ten years | 35,543 | |
Due greater than ten years | 133,367 | |
Mortgage-backed securities - residential | 163,453 | |
Mortgage-backed securities - commercial | 130,089 | |
Total | 593,154 | |
Held-to-maturity, Estimated Fair Value | ||
Due less than one year | 20,545 | |
Due after one year through five years | 106,351 | |
Due after five years through ten years | 33,601 | |
Due greater than ten years | 123,160 | |
Mortgage-backed securities - residential | 153,314 | |
Mortgage-backed securities - commercial | 124,362 | |
Total | $ 561,333 | $ 0 |
SECURITIES - Summary of Availab
SECURITIES - Summary of Available-For-Sale Securities With Unrealized and Unrecognized Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Fair value, Less than 12 Months | $ 1,263,342 | $ 966,502 |
Fair Value, 12 Months or Longer | 127,652 | 20,938 |
Fair Value, Total | 1,390,994 | 987,440 |
Unrealized Losses, Less than 12 Months | 131,975 | 10,511 |
Unrealized Losses, 12 Months or Longer | 18,532 | 585 |
Unrealized Losses, Total | 150,507 | 11,096 |
Fair Value, Held-to-maturity, Less than 12 Months | 507,957 | |
Fair Value, Held-to-maturity, 12 Months or Longer | 0 | |
Fair Value, Held-to-maturity, Total | 507,957 | |
Unrealized Losses, Held-to-maturity, Less than 12 Months | 32,049 | |
Unrealized Losses, Held-to-maturity, 12 Months or Longer | 0 | |
Unrealized Losses, Held-to-maturity, Total | 32,049 | |
U.S. Treasury | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Fair value, Less than 12 Months | 124,260 | 130,098 |
Fair Value, 12 Months or Longer | 2,582 | 0 |
Fair Value, Total | 126,842 | 130,098 |
Unrealized Losses, Less than 12 Months | 8,794 | 814 |
Unrealized Losses, 12 Months or Longer | 185 | 0 |
Unrealized Losses, Total | 8,979 | 814 |
Fair Value, Held-to-maturity, Less than 12 Months | 106,124 | |
Fair Value, Held-to-maturity, 12 Months or Longer | 0 | |
Fair Value, Held-to-maturity, Total | 106,124 | |
Unrealized Losses, Held-to-maturity, Less than 12 Months | 3,403 | |
Unrealized Losses, Held-to-maturity, 12 Months or Longer | 0 | |
Unrealized Losses, Held-to-maturity, Total | 3,403 | |
Obligations of U.S. government agencies and sponsored entities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Fair value, Less than 12 Months | 152,689 | 121,402 |
Fair Value, 12 Months or Longer | 4,503 | 5,254 |
Fair Value, Total | 157,192 | 126,656 |
Unrealized Losses, Less than 12 Months | 12,837 | 933 |
Unrealized Losses, 12 Months or Longer | 538 | 161 |
Unrealized Losses, Total | 13,375 | 1,094 |
Fair Value, Held-to-maturity, Less than 12 Months | 32,638 | |
Fair Value, Held-to-maturity, 12 Months or Longer | 0 | |
Fair Value, Held-to-maturity, Total | 32,638 | |
Unrealized Losses, Held-to-maturity, Less than 12 Months | 489 | |
Unrealized Losses, Held-to-maturity, 12 Months or Longer | 0 | |
Unrealized Losses, Held-to-maturity, Total | 489 | |
Tax-exempt and taxable obligations of states and municipal subdivisions | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Fair value, Less than 12 Months | 477,118 | 249,430 |
Fair Value, 12 Months or Longer | 58,393 | 3,692 |
Fair Value, Total | 535,511 | 253,122 |
Unrealized Losses, Less than 12 Months | 70,673 | 2,692 |
Unrealized Losses, 12 Months or Longer | 9,988 | 119 |
Unrealized Losses, Total | 80,661 | 2,811 |
Fair Value, Held-to-maturity, Less than 12 Months | 86,881 | |
Fair Value, Held-to-maturity, 12 Months or Longer | 0 | |
Fair Value, Held-to-maturity, Total | 86,881 | |
Unrealized Losses, Held-to-maturity, Less than 12 Months | 11,576 | |
Unrealized Losses, Held-to-maturity, 12 Months or Longer | 0 | |
Unrealized Losses, Held-to-maturity, Total | 11,576 | |
Mortgage-backed securities - residential | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Fair value, Less than 12 Months | 299,279 | 284,183 |
Fair Value, 12 Months or Longer | 31,500 | 8,912 |
Fair Value, Total | 330,779 | 293,095 |
Unrealized Losses, Less than 12 Months | 24,606 | 3,228 |
Unrealized Losses, 12 Months or Longer | 4,595 | 197 |
Unrealized Losses, Total | 29,201 | 3,425 |
Fair Value, Held-to-maturity, Less than 12 Months | 153,314 | |
Fair Value, Held-to-maturity, 12 Months or Longer | 0 | |
Fair Value, Held-to-maturity, Total | 153,314 | |
Unrealized Losses, Held-to-maturity, Less than 12 Months | 10,139 | |
Unrealized Losses, Held-to-maturity, 12 Months or Longer | 0 | |
Unrealized Losses, Held-to-maturity, Total | 10,139 | |
Mortgage-backed securities - commercial | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Fair value, Less than 12 Months | 182,312 | 174,697 |
Fair Value, 12 Months or Longer | 30,647 | 3,038 |
Fair Value, Total | 212,959 | 177,735 |
Unrealized Losses, Less than 12 Months | 13,954 | 2,836 |
Unrealized Losses, 12 Months or Longer | 3,222 | 103 |
Unrealized Losses, Total | 17,176 | 2,939 |
Fair Value, Held-to-maturity, Less than 12 Months | 119,649 | |
Fair Value, Held-to-maturity, 12 Months or Longer | 0 | |
Fair Value, Held-to-maturity, Total | 119,649 | |
Unrealized Losses, Held-to-maturity, Less than 12 Months | 5,793 | |
Unrealized Losses, Held-to-maturity, 12 Months or Longer | 0 | |
Unrealized Losses, Held-to-maturity, Total | 5,793 | |
Corporate obligations | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Fair value, Less than 12 Months | 27,684 | 6,692 |
Fair Value, 12 Months or Longer | 27 | 42 |
Fair Value, Total | 27,711 | 6,734 |
Unrealized Losses, Less than 12 Months | 1,111 | 8 |
Unrealized Losses, 12 Months or Longer | 4 | 5 |
Unrealized Losses, Total | 1,115 | $ 13 |
Fair Value, Held-to-maturity, Less than 12 Months | 9,351 | |
Fair Value, Held-to-maturity, 12 Months or Longer | 0 | |
Fair Value, Held-to-maturity, Total | 9,351 | |
Unrealized Losses, Held-to-maturity, Less than 12 Months | 649 | |
Unrealized Losses, Held-to-maturity, 12 Months or Longer | 0 | |
Unrealized Losses, Held-to-maturity, Total | $ 649 |
LOANS - Composition of Loan Por
LOANS - Composition of Loan Portfolio (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Loans held for sale | ||||||
Total LHFS | $ 6,703 | $ 7,678 | ||||
Loans held for investment | ||||||
Loans held for investment | 3,124,924 | 2,959,553 | ||||
Less allowance for credit losses | (32,400) | $ (31,620) | (30,742) | $ (32,457) | $ (32,663) | $ (35,820) |
Net LHFI | 3,092,524 | 2,928,811 | ||||
Mortgage loans held for sale | ||||||
Loans held for sale | ||||||
Total LHFS | 6,703 | 7,678 | ||||
Commercial, financial and agriculture | ||||||
Loans held for investment | ||||||
Loans held for investment | 402,619 | 397,516 | ||||
Less allowance for credit losses | (4,511) | (4,874) | (4,873) | (3,910) | (4,158) | (6,214) |
Commercial real estate | ||||||
Loans held for investment | ||||||
Loans held for investment | 1,810,204 | 1,683,698 | ||||
Less allowance for credit losses | (18,668) | (17,773) | (17,552) | (17,573) | (17,578) | (24,319) |
Consumer real estate | ||||||
Loans held for investment | ||||||
Loans held for investment | 871,051 | 838,654 | ||||
Less allowance for credit losses | (8,752) | (8,492) | (7,889) | (10,339) | (10,280) | (4,736) |
Consumer installment | ||||||
Loans held for investment | ||||||
Loans held for investment | 41,050 | 39,685 | ||||
Less allowance for credit losses | $ (469) | $ (481) | $ (428) | $ (635) | $ (647) | $ (551) |
LOANS - Summary of Loans Classi
LOANS - Summary of Loans Classified as Past Due in Excess of Thirty Days or More and Loans Classified as Non-Accrual (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30 to 89 Days | $ 3,732 | $ 2,960 |
Past Due 90 Days or More and Still Accruing | 527 | 45 |
Nonaccrual | 21,000 | 23,418 |
PCD | 2,678 | 4,595 |
Total Past Due, Nonaccrual and PCD | 27,937 | 31,018 |
Loans held for investment | 3,124,924 | 2,959,553 |
Nonaccrual and PCD with No ACL | 1,795 | 3,149 |
PPP Loans | 6,300 | 41,100 |
Commercial, financial and agriculture | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30 to 89 Days | 207 | 246 |
Past Due 90 Days or More and Still Accruing | 527 | 0 |
Nonaccrual | 335 | 190 |
PCD | 0 | 0 |
Total Past Due, Nonaccrual and PCD | 1,069 | 436 |
Loans held for investment | 402,619 | 397,516 |
Nonaccrual and PCD with No ACL | 218 | 0 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30 to 89 Days | 1,894 | 453 |
Past Due 90 Days or More and Still Accruing | 0 | 0 |
Nonaccrual | 17,733 | 19,445 |
PCD | 1,402 | 2,082 |
Total Past Due, Nonaccrual and PCD | 21,029 | 21,980 |
Loans held for investment | 1,810,204 | 1,683,698 |
Nonaccrual and PCD with No ACL | 1,487 | 1,661 |
Consumer real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30 to 89 Days | 1,437 | 2,140 |
Past Due 90 Days or More and Still Accruing | 0 | 45 |
Nonaccrual | 2,928 | 3,776 |
PCD | 1,276 | 2,512 |
Total Past Due, Nonaccrual and PCD | 5,641 | 8,473 |
Loans held for investment | 871,051 | 838,654 |
Nonaccrual and PCD with No ACL | 90 | 1,488 |
Consumer installment | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30 to 89 Days | 194 | 121 |
Past Due 90 Days or More and Still Accruing | 0 | 0 |
Nonaccrual | 4 | 7 |
PCD | 0 | 1 |
Total Past Due, Nonaccrual and PCD | 198 | 129 |
Loans held for investment | 41,050 | 39,685 |
Nonaccrual and PCD with No ACL | $ 0 | $ 0 |
LOANS - Detail of Troubled Debt
LOANS - Detail of Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 USD ($) loan | Jun. 30, 2021 USD ($) loan | Jun. 30, 2022 USD ($) loan | Jun. 30, 2021 USD ($) loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | loan | 1 | 3 | 1 | 3 |
Outstanding Recorded Investment Pre-Modification | $ 15 | $ 291 | $ 15 | $ 291 |
Outstanding Recorded Investment Post-Modification | 15 | 281 | 15 | 281 |
Period increase (decrease), ACL | 0 | 21 | ||
TDR charge-offs | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial, financial and agriculture | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | loan | 1 | 1 | ||
Outstanding Recorded Investment Pre-Modification | $ 15 | $ 15 | ||
Outstanding Recorded Investment Post-Modification | $ 15 | $ 15 | ||
Commercial real estate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | loan | 2 | 2 | ||
Outstanding Recorded Investment Pre-Modification | $ 237 | $ 237 | ||
Outstanding Recorded Investment Post-Modification | $ 237 | $ 237 | ||
Consumer real estate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | loan | 1 | 1 | ||
Outstanding Recorded Investment Pre-Modification | $ 54 | $ 54 | ||
Outstanding Recorded Investment Post-Modification | $ 44 | $ 44 |
LOANS - Summary of Loans Modifi
LOANS - Summary of Loans Modified as TDRs for Which There Was a Payment Default Within Twelve Months Following the Modification (Details) - Trouble debt restructuring $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 USD ($) loan | Jun. 30, 2021 USD ($) loan | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of Loans | loan | 6 | 4 |
Recorded Investment | $ | $ 4,695 | $ 1,071 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of Loans | loan | 3 | 3 |
Recorded Investment | $ | $ 4,562 | $ 1,027 |
Consumer real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of Loans | loan | 3 | 1 |
Recorded Investment | $ | $ 133 | $ 44 |
LOANS - Modifications of Loans
LOANS - Modifications of Loans Performing (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment | $ 3,124,924 | $ 2,959,553 |
Past Due 90 Days or More and Still Accruing | 527 | 45 |
Nonaccrual | 21,000 | 23,418 |
Total | 21,144 | 24,200 |
Financing receivable, total | 3,800 | |
Commercial, financial and agriculture | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment | 402,619 | 397,516 |
Past Due 90 Days or More and Still Accruing | 527 | 0 |
Nonaccrual | 335 | 190 |
Total | 79 | |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment | 1,810,204 | 1,683,698 |
Past Due 90 Days or More and Still Accruing | 0 | 0 |
Nonaccrual | 17,733 | 19,445 |
Total | 18,991 | |
Consumer real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment | 871,051 | 838,654 |
Past Due 90 Days or More and Still Accruing | 0 | 45 |
Nonaccrual | 2,928 | 3,776 |
Total | 2,059 | |
Consumer installment | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment | 41,050 | 39,685 |
Past Due 90 Days or More and Still Accruing | 0 | 0 |
Nonaccrual | 4 | 7 |
Total | 15 | |
Financial Asset, Not Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable allowance for credit losses current | 53 | 90 |
Financial Asset, Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 16,816 | 18,938 |
Financing receivable allowance for credit losses current nonaccrual status | 3,778 | 4,217 |
Financial Asset, Past Due | Commercial, financial and agriculture | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 65 | 107 |
Financial Asset, Past Due | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 15,849 | 16,858 |
Financial Asset, Past Due | Consumer real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 902 | 1,973 |
Financial Asset, Past Due | Consumer installment | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 0 | 0 |
TDRs | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment | 24,158 | |
Financing receivable, total | 3,831 | 4,307 |
TDRs | Commercial, financial and agriculture | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment | 170 | |
TDRs | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment | 20,225 | |
TDRs | Consumer real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment | 3,745 | |
TDRs | Consumer installment | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment | 18 | |
TDRs | Financial Asset, Not Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment | 4,329 | 5,220 |
TDRs | Financial Asset, Not Past Due | Commercial, financial and agriculture | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment | 15 | 63 |
TDRs | Financial Asset, Not Past Due | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment | 3,142 | 3,367 |
TDRs | Financial Asset, Not Past Due | Consumer real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment | 1,157 | 1,772 |
TDRs | Financial Asset, Not Past Due | Consumer installment | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans held for investment | 15 | 18 |
TDRs | Financial Asset, Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30-89 | 0 | 0 |
Past Due 90 Days or More and Still Accruing | 0 | 0 |
TDRs | Financial Asset, Past Due | Commercial, financial and agriculture | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30-89 | 0 | 0 |
Past Due 90 Days or More and Still Accruing | 0 | 0 |
TDRs | Financial Asset, Past Due | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30-89 | 0 | 0 |
Past Due 90 Days or More and Still Accruing | 0 | 0 |
TDRs | Financial Asset, Past Due | Consumer real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30-89 | 0 | 0 |
Past Due 90 Days or More and Still Accruing | 0 | 0 |
TDRs | Financial Asset, Past Due | Consumer installment | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due 30-89 | 0 | 0 |
Past Due 90 Days or More and Still Accruing | $ 0 | $ 0 |
LOANS - Collateral Dependent Lo
LOANS - Collateral Dependent Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | $ 2,017 | $ 3,570 |
Commercial, financial and agriculture | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 218 | |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 1,487 | 1,712 |
Consumer real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 312 | 1,858 |
Real Property | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 1,799 | 3,570 |
Real Property | Commercial, financial and agriculture | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 0 | |
Real Property | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 1,487 | 1,712 |
Real Property | Consumer real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 312 | $ 1,858 |
Equipment | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 218 | |
Equipment | Commercial, financial and agriculture | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 218 | |
Equipment | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | 0 | |
Equipment | Consumer real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized cost basis, collateral dependent loans | $ 0 |
LOANS - Amortized Cost Basis of
LOANS - Amortized Cost Basis of Loans by Credit Quality Indicator and Class of Loans Based on the Most Recent Analysis Performed (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Recorded Investment [Line Items] | ||
Year one | $ 517,093 | $ 822,076 |
Year two | 780,874 | 553,259 |
Year three | 482,304 | 342,842 |
Year four | 296,901 | 336,454 |
Year five | 277,971 | 234,870 |
More than five years | 663,924 | 566,100 |
Revolving Loans | 105,856 | 103,952 |
Loans held for investment | 3,124,924 | 2,959,553 |
Commercial, financial and agriculture | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one | 78,126 | 152,798 |
Year two | 118,472 | 60,361 |
Year three | 50,816 | 54,949 |
Year four | 46,808 | 54,262 |
Year five | 46,632 | 22,924 |
More than five years | 61,698 | 52,044 |
Revolving Loans | 66 | 178 |
Loans held for investment | 402,619 | 397,516 |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one | 288,699 | 407,514 |
Year two | 424,204 | 318,736 |
Year three | 288,874 | 211,592 |
Year four | 189,995 | 210,166 |
Year five | 172,284 | 155,827 |
More than five years | 446,149 | 379,863 |
Revolving Loans | 0 | 0 |
Loans held for investment | 1,810,204 | 1,683,698 |
Consumer real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one | 139,292 | 243,784 |
Year two | 225,023 | 164,891 |
Year three | 135,978 | 72,076 |
Year four | 57,201 | 70,376 |
Year five | 58,053 | 55,022 |
More than five years | 154,215 | 132,428 |
Revolving Loans | 101,287 | 100,077 |
Loans held for investment | 871,051 | 838,654 |
Consumer installment | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one | 10,976 | 17,980 |
Year two | 13,175 | 9,271 |
Year three | 6,636 | 4,225 |
Year four | 2,897 | 1,650 |
Year five | 1,001 | 1,097 |
More than five years | 1,863 | 1,765 |
Revolving Loans | 4,502 | 3,697 |
Loans held for investment | 41,050 | 39,685 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one | 516,984 | 816,402 |
Year two | 774,123 | 546,998 |
Year three | 476,613 | 335,368 |
Year four | 291,654 | 294,516 |
Year five | 252,050 | 209,393 |
More than five years | 603,170 | 499,357 |
Revolving Loans | 104,438 | 102,319 |
Loans held for investment | 3,019,031 | 2,804,353 |
Pass | Commercial, financial and agriculture | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one | 78,092 | 152,798 |
Year two | 118,432 | 60,106 |
Year three | 50,598 | 52,802 |
Year four | 46,425 | 47,988 |
Year five | 46,582 | 22,083 |
More than five years | 60,811 | 43,773 |
Revolving Loans | 66 | 178 |
Loans held for investment | 401,006 | 379,728 |
Pass | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one | 288,699 | 402,284 |
Year two | 417,922 | 313,288 |
Year three | 283,843 | 207,879 |
Year four | 185,986 | 177,943 |
Year five | 149,012 | 134,234 |
More than five years | 396,464 | 332,588 |
Revolving Loans | 0 | 0 |
Loans held for investment | 1,721,925 | 1,568,216 |
Pass | Consumer real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one | 139,239 | 243,340 |
Year two | 224,599 | 164,359 |
Year three | 135,559 | 70,465 |
Year four | 56,347 | 66,940 |
Year five | 55,459 | 51,988 |
More than five years | 144,043 | 121,238 |
Revolving Loans | 99,869 | 98,444 |
Loans held for investment | 855,114 | 816,774 |
Pass | Consumer installment | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one | 10,954 | 17,980 |
Year two | 13,170 | 9,245 |
Year three | 6,613 | 4,222 |
Year four | 2,895 | 1,645 |
Year five | 998 | 1,088 |
More than five years | 1,853 | 1,758 |
Revolving Loans | 4,502 | 3,697 |
Loans held for investment | 40,986 | 39,635 |
Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one | 0 | 1,326 |
Year two | 1,309 | 2,514 |
Year three | 2,488 | 2,862 |
Year four | 2,261 | 15,192 |
Year five | 6,937 | 5,007 |
More than five years | 17,333 | 17,497 |
Revolving Loans | 0 | 0 |
Loans held for investment | 30,328 | 44,398 |
Special mention | Commercial, financial and agriculture | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one | 0 | 0 |
Year two | 0 | 255 |
Year three | 218 | 749 |
Year four | 336 | 90 |
Year five | 0 | 481 |
More than five years | 416 | 29 |
Revolving Loans | 0 | 0 |
Loans held for investment | 970 | 1,604 |
Special mention | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one | 0 | 1,326 |
Year two | 1,309 | 2,259 |
Year three | 2,269 | 1,782 |
Year four | 1,725 | 15,076 |
Year five | 6,911 | 2,779 |
More than five years | 13,889 | 15,519 |
Revolving Loans | 0 | 0 |
Loans held for investment | 26,104 | 38,741 |
Special mention | Consumer real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one | 0 | 0 |
Year two | 0 | 0 |
Year three | 0 | 331 |
Year four | 201 | 26 |
Year five | 26 | 1,746 |
More than five years | 3,028 | 1,949 |
Revolving Loans | 0 | 0 |
Loans held for investment | 3,254 | 4,052 |
Special mention | Consumer installment | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one | 0 | 0 |
Year two | 0 | 0 |
Year three | 0 | 0 |
Year four | 0 | 0 |
Year five | 0 | 1 |
More than five years | 0 | 0 |
Revolving Loans | 0 | 0 |
Loans held for investment | 0 | 1 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one | 109 | 4,348 |
Year two | 5,441 | 3,747 |
Year three | 3,204 | 4,612 |
Year four | 2,986 | 26,746 |
Year five | 18,984 | 20,470 |
More than five years | 42,746 | 49,246 |
Revolving Loans | 1,418 | 1,633 |
Loans held for investment | 74,890 | 110,802 |
Substandard | Commercial, financial and agriculture | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one | 35 | 0 |
Year two | 40 | 0 |
Year three | 0 | 1,398 |
Year four | 47 | 6,184 |
Year five | 50 | 360 |
More than five years | 471 | 8,242 |
Revolving Loans | 0 | 0 |
Loans held for investment | 643 | 16,184 |
Substandard | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one | 0 | 3,904 |
Year two | 4,973 | 3,189 |
Year three | 2,761 | 1,931 |
Year four | 2,284 | 17,147 |
Year five | 16,362 | 18,814 |
More than five years | 35,121 | 31,756 |
Revolving Loans | 0 | 0 |
Loans held for investment | 61,501 | 76,741 |
Substandard | Consumer real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one | 53 | 444 |
Year two | 424 | 532 |
Year three | 420 | 1,280 |
Year four | 653 | 3,410 |
Year five | 2,569 | 1,288 |
More than five years | 7,145 | 9,241 |
Revolving Loans | 1,418 | 1,633 |
Loans held for investment | 12,683 | 17,828 |
Substandard | Consumer installment | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one | 22 | 0 |
Year two | 4 | 26 |
Year three | 23 | 3 |
Year four | 2 | 5 |
Year five | 3 | 8 |
More than five years | 9 | 7 |
Revolving Loans | 0 | 0 |
Loans held for investment | 63 | 49 |
Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one | 0 | 0 |
Year two | 0 | 0 |
Year three | 0 | 0 |
Year four | 0 | 0 |
Year five | 0 | 0 |
More than five years | 675 | 0 |
Revolving Loans | 0 | 0 |
Loans held for investment | 675 | 0 |
Doubtful | Commercial, financial and agriculture | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one | 0 | 0 |
Year two | 0 | 0 |
Year three | 0 | 0 |
Year four | 0 | 0 |
Year five | 0 | 0 |
More than five years | 0 | 0 |
Revolving Loans | 0 | 0 |
Loans held for investment | 0 | 0 |
Doubtful | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one | 0 | 0 |
Year two | 0 | 0 |
Year three | 0 | 0 |
Year four | 0 | 0 |
Year five | 0 | 0 |
More than five years | 675 | 0 |
Revolving Loans | 0 | 0 |
Loans held for investment | 675 | 0 |
Doubtful | Consumer real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one | 0 | 0 |
Year two | 0 | 0 |
Year three | 0 | 0 |
Year four | 0 | 0 |
Year five | 0 | 0 |
More than five years | 0 | 0 |
Revolving Loans | 0 | 0 |
Loans held for investment | 0 | 0 |
Doubtful | Consumer installment | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Year one | 0 | 0 |
Year two | 0 | 0 |
Year three | 0 | 0 |
Year four | 0 | 0 |
Year five | 0 | 0 |
More than five years | 0 | 0 |
Revolving Loans | 0 | 0 |
Loans held for investment | $ 0 | $ 0 |
LOANS - Activity in Allowance f
LOANS - Activity in Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Allowance for loan losses: | ||||
Beginning balance | $ 31,620 | $ 32,663 | $ 30,742 | $ 35,820 |
Impact of ASC 326 adoption on non-PCD loans | (718) | |||
Impact of ASC 326 adoption on PCD loans | 1,115 | |||
Provision for credit loss | 450 | 0 | 450 | 0 |
Loans charged-off | (426) | (888) | (657) | (5,011) |
Recoveries | 756 | 682 | 1,865 | 1,251 |
Total ending allowance balance | 32,400 | 32,457 | 32,400 | 32,457 |
Commercial, financial and agriculture | ||||
Allowance for loan losses: | ||||
Beginning balance | 4,874 | 4,158 | 4,873 | 6,214 |
Impact of ASC 326 adoption on non-PCD loans | (1,319) | |||
Impact of ASC 326 adoption on PCD loans | 166 | |||
Provision for credit loss | (313) | 0 | (313) | 0 |
Loans charged-off | (94) | (490) | (146) | (1,476) |
Recoveries | 44 | 242 | 97 | 325 |
Total ending allowance balance | 4,511 | 3,910 | 4,511 | 3,910 |
Commercial real estate | ||||
Allowance for loan losses: | ||||
Beginning balance | 17,773 | 17,578 | 17,552 | 24,319 |
Impact of ASC 326 adoption on non-PCD loans | (4,607) | |||
Impact of ASC 326 adoption on PCD loans | 575 | |||
Provision for credit loss | 629 | 0 | 629 | 0 |
Loans charged-off | (24) | (166) | (27) | (3,007) |
Recoveries | 290 | 161 | 514 | 293 |
Total ending allowance balance | 18,668 | 17,573 | 18,668 | 17,573 |
Consumer real estate | ||||
Allowance for loan losses: | ||||
Beginning balance | 8,492 | 10,280 | 7,889 | 4,736 |
Impact of ASC 326 adoption on non-PCD loans | 5,257 | |||
Impact of ASC 326 adoption on PCD loans | 372 | |||
Provision for credit loss | 62 | 0 | 62 | 0 |
Loans charged-off | (140) | (124) | (147) | (263) |
Recoveries | 338 | 183 | 948 | 237 |
Total ending allowance balance | 8,752 | 10,339 | 8,752 | 10,339 |
Consumer installment | ||||
Allowance for loan losses: | ||||
Beginning balance | 481 | 647 | 428 | 551 |
Impact of ASC 326 adoption on non-PCD loans | (49) | |||
Impact of ASC 326 adoption on PCD loans | 2 | |||
Provision for credit loss | 72 | 0 | 72 | 0 |
Loans charged-off | (168) | (108) | (337) | (265) |
Recoveries | 84 | 96 | 306 | 396 |
Total ending allowance balance | $ 469 | $ 635 | $ 469 | $ 635 |
LOANS - Loans and Allowance for
LOANS - Loans and Allowance for Loan Losses, Broken Down by Portfolio Segment (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
LHFI | $ 3,124,924 | $ 2,959,553 | ||||
Allowance for Credit Losses | 32,400 | $ 31,620 | 30,742 | $ 32,457 | $ 32,663 | $ 35,820 |
Commercial, financial and agriculture | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
LHFI | 402,619 | 397,516 | ||||
Allowance for Credit Losses | 4,511 | 4,874 | 4,873 | 3,910 | 4,158 | 6,214 |
Consumer real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
LHFI | 871,051 | 838,654 | ||||
Allowance for Credit Losses | 8,752 | 8,492 | 7,889 | 10,339 | 10,280 | 4,736 |
Commercial real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
LHFI | 1,810,204 | 1,683,698 | ||||
Allowance for Credit Losses | 18,668 | 17,773 | 17,552 | 17,573 | 17,578 | 24,319 |
Consumer installment | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
LHFI | 41,050 | 39,685 | ||||
Allowance for Credit Losses | 469 | $ 481 | 428 | $ 635 | $ 647 | $ 551 |
Individually evaluated | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
LHFI | 2,017 | 3,570 | ||||
Allowance for Credit Losses | 6 | 6 | ||||
Individually evaluated | Commercial, financial and agriculture | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
LHFI | 218 | 0 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Individually evaluated | Consumer real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
LHFI | 312 | 1,858 | ||||
Allowance for Credit Losses | 6 | 2 | ||||
Individually evaluated | Commercial real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
LHFI | 1,487 | 1,712 | ||||
Allowance for Credit Losses | 0 | 4 | ||||
Individually evaluated | Consumer installment | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
LHFI | 0 | 0 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Collectively evaluated | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
LHFI | 3,122,907 | 2,955,983 | ||||
Allowance for Credit Losses | 32,394 | 30,736 | ||||
Collectively evaluated | Commercial, financial and agriculture | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
LHFI | 402,401 | 397,516 | ||||
Allowance for Credit Losses | 4,511 | 4,873 | ||||
Collectively evaluated | Consumer real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
LHFI | 870,739 | 836,796 | ||||
Allowance for Credit Losses | 8,746 | 7,887 | ||||
Collectively evaluated | Commercial real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
LHFI | 1,808,717 | 1,681,986 | ||||
Allowance for Credit Losses | 18,668 | 17,548 | ||||
Collectively evaluated | Consumer installment | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
LHFI | 41,050 | 39,685 | ||||
Allowance for Credit Losses | $ 469 | $ 428 |
LOANS - Narrative (Details)
LOANS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Financing Receivable, Recorded Investment [Line Items] | |||||
Financing receivable, accrued interest, before allowance for credit loss | $ 15,300 | $ 15,300 | |||
Accrued interest receivable for LHFI totaled with no related ACL | $ 16,400 | ||||
Amortized cost, PCD loans | 6,200 | 6,200 | 8,600 | ||
PCD loans, estimated ACL | 584 | 584 | 855 | ||
Total | 21,144 | 21,144 | 24,200 | ||
Additional amount committed on TDR loans | 0 | 0 | |||
TDRs allowance for loan losses | 4,300 | ||||
Period increase (decrease) in allowance | 0 | $ 21 | |||
Loans charged-off | 426 | $ 888 | 657 | 5,011 | |
Total loans, other financial institutions | 148,600 | 148,600 | 118,400 | ||
Loans sold to other financial institutions. | 62,400 | 62,400 | 77,800 | ||
Loans purchased | 86,200 | $ 86,200 | 40,600 | ||
LGD Rate | 15% | ||||
Threshold default percentage | 1% | ||||
Provision for credit loss | 450 | 0 | $ 450 | 0 | |
Recoveries | 756 | $ 682 | 1,865 | 1,251 | |
PPP Loans | $ 6,300 | 6,300 | $ 41,100 | ||
Trouble debt restructuring | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Period increase (decrease) in allowance | 1,500 | 238 | |||
Loans charged-off | $ 0 | $ 0 |
COVID-19 UPDATE (Details)
COVID-19 UPDATE (Details) $ in Millions | Jun. 30, 2022 USD ($) |
Unusual or Infrequent Items, or Both [Abstract] | |
Aggregate outstanding exposure in segments covid-19 | $ 526.9 |
SUBSEQUENT EVENTS_OTHER (Detail
SUBSEQUENT EVENTS/OTHER (Details) - USD ($) $ in Thousands | Aug. 01, 2022 | Jul. 27, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
SUBSEQUENT EVENTS | ||||
Goodwill | $ 156,942 | $ 156,663 | ||
Heritage Southeast Bank [Member] | ||||
SUBSEQUENT EVENTS | ||||
Assets | 1,700,000 | |||
Loans | 1,100,000 | |||
Deposits | 1,500,000 | |||
Beach Bancorp, Inc. ("BBI") | ||||
SUBSEQUENT EVENTS | ||||
Assets | 619,300 | |||
Loans | 485,500 | |||
Deposits | $ 486,100 | |||
Subsequent Event | Heritage Southeast Bank [Member] | ||||
SUBSEQUENT EVENTS | ||||
Business combination, stock converted into company stock | 0.965 | |||
Purchase price | $ 207,000 | |||
Subsequent Event | Beach Bancorp, Inc. ("BBI") | ||||
SUBSEQUENT EVENTS | ||||
Business combination, stock converted into company stock | 0.1711 | |||
Purchase price | $ 101,500 | |||
Common stock acquired | 3,498,936 | |||
Cash | $ 1 | |||
Common shares, entitled to purchase | 310,427 |